UK property prices came to a standstill in November amid economic and political uncertainty.
However, a slight increase of £139 in the average property value still managed to push prices to a record high, according to the Halifax House Price Index.
Halifax recorded a 0.0% month-on-month change in the average house price last month, following a 0.5% monthly increase in October. The average property price is now £299,892.
The data showed that annual growth slowed to 0.7% in November, down from 1.9% in October.
Amanda Bryden, head of mortgages at Halifax, said: “Annual growth has slowed to +0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year.
“This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp Duty back in the Spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.”
Northern Ireland remained the strongest performing nation or region in the UK, with average property prices rising by 8.9% over the past year.
In contrast, prices in London fell by 1%, the South East by 0.3% and Eastern England by 0.1%. Despite this, the capital remains the most expensive part of the UK, with an average property now costing £539,766.
Bryden added: “Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”
Commenting on the findings, Karen Noye, mortgage expert at Quilter, said: “The dust has now settled post budget, giving borrowers a clearer view of what the early months of 2026 may look like.
“Mortgage activity shows a market that wants to move but is still cautious. The new mansion tax was only (recently) announced, so it has had no bearing on this month’s figures and its wider impact is likely to be limited. It may, however, create pressure for some older homeowners who are asset rich but not cash rich and now need to factor in an annual charge.”
Noye added: “Whether December’s prices show a small rise, a slight fall or continued stability, the story will be much the same. The outlook for 2026 rests on the path of mortgage rates and the resilience of household incomes. Greater clarity post budget and the prospect of lower borrowing costs give the market a firmer footing, but affordability will remain the defining constraint.”
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