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UK House Prices Hold Steady in November, Halifax Data Shows Near-Standstill Growth

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  Published in House and Home on Friday, December 5th 2025 at 6:33 GMT by The Irish News

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UK House Prices Remain Flat in November, Halifax Data Shows Near‑Standstill Growth

The latest figures released by Halifax on Tuesday confirm that the average price of a UK home has essentially held steady in November, a phenomenon that the bank’s analysts describe as a “near‑standstill” in month‑on‑month growth. In the 52‑week period ending in the first week of November, the national average price rose by just 0.04 % to £289,000 – a marginal increase of 3,500 pence on the same period a year earlier. While the headline is that prices are “stuck”, the year‑over‑year gain remains healthy, underscoring a market that is still moving up in spite of recent headwinds.

Key Numbers

The average price figure – calculated from Halifax’s database of property sales in the UK – reflects a small uptick of just 11 pence over October, but the price index, which smooths out short‑term volatility, shows a 0.1 % rise from the previous month. Halifax’s data release also confirms that the average price in London, the country’s most expensive market, reached a record £473,000 for the period, while the North West’s average dropped to £242,000 – the lowest it has been since 2014.

Why the Price Stagnation?

The article points out that a number of macro‑economic factors are keeping the market from experiencing the kind of price acceleration seen during the pre‑COVID boom. The most prominent are:

1. Rising Mortgage Rates – The Bank of England’s recent policy rate hikes have pushed mortgage rates higher, making borrowing more expensive for potential buyers. Halifax Chief Economist Simon Smith explains that “higher mortgage rates are dampening demand, particularly among first‑time buyers who are still in the early stages of their financial planning.”

2. Inflation and Cost of Living – Persistent inflation has reduced household disposable income. Homeowners and prospective buyers are therefore cautious, which has tempered the demand‑side pressure that usually pushes prices higher.

3. Government Housing Policy – The temporary “Help to Buy” scheme has been phased out, leaving fewer incentives for buyers to take advantage of the market. Additionally, the government’s “Housing Health and Safety Rating System” (HHSRS) has been under review, with concerns that stricter standards could limit new construction output.

4. Supply Constraints – Building on the UK’s long‑standing supply‑side challenges, the construction sector is still facing labor shortages, material cost increases, and planning delays, limiting the addition of new inventory that could spur price competition.

Despite these dampening forces, the article notes that the year‑over‑year increase of 1.2 % still points to an underlying bullish trend, albeit at a slower pace. Halifax’s data suggest that the average price growth, while modest, is still well above the 0.5 % growth observed in the last two quarters.

Market Sentiment and Regional Variations

The article also explores sentiment across different regions. While London remains the hottest market, its growth rate has slowed from the 2.5 % YoY pace seen in September to 1.8 % in November. In contrast, the Midlands and the South East have seen more robust growth, with price gains of 1.5 % and 1.4 % respectively. The North West, however, has entered a mild decline for the first time in more than a decade, with a 0.3 % YoY drop in average price.

Housing agents quoted in the article express caution but optimism. “We’re seeing fewer buyers in the market today, but when they do enter, they’re looking at well‑priced homes, which keeps the price level stable,” says a London-based estate agent. “In the South East, the inventory is still tight, so that’s keeping prices on the rise, albeit at a slower rate.”

Mortgage Market Implications

From a mortgage‑lender perspective, the article highlights how the slow price rise could influence risk profiles. The Bank of England’s Mortgage Market Survey indicated that lenders are gradually tightening lending criteria, with a higher proportion of applicants required to meet stricter affordability tests. Halifax’s chief economist warns that the “combination of higher rates and tighter lending could compress the market further if not offset by a resurgence in demand.”

Future Outlook

Looking ahead, the article references the upcoming “Housing Forecast 2025” released by the UK government, which predicts a continued upward trajectory for house prices but with a deceleration of the growth rate to approximately 0.8 % over the next 12 months. Halifax’s own forecasts suggest that, barring further policy changes or macro‑economic shocks, the UK housing market will likely remain in a state of “slow but steady” growth, with price increases plateauing near the current level for the next few months.

The article concludes by noting that while the month‑on‑month near‑standstill may appear concerning at first glance, the broader context of a resilient year‑over‑year growth, coupled with a stable but cautious market sentiment, points to a housing sector that is adjusting rather than collapsing. As the UK’s economy continues to navigate high inflation, rising interest rates, and supply‑side constraints, buyers, sellers, and lenders will need to remain agile, monitoring policy developments and market data closely to make informed decisions.