HM Land Registry’s latest UK House Price Index shows the average property price across the UK stands at £270,000 in December 2025, up £6,000 on a year earlier but down 0.7% from November on a non-seasonally adjusted basis.
The annual rate of house price inflation eased from a revised 2.8% in November to 2.4% in December, suggesting the market lost some momentum at the end of last year.
Across the nations, England recorded annual growth of 1.7%, taking the average price to £292,000. Wales saw prices rise by 5.0% to £215,000, while Scotland posted annual growth of 4.9% to £191,000.
In Northern Ireland, where the figures are reported quarterly, prices were up 7.5% in the year to the fourth quarter, taking the average to £196,000.
REGIONAL PICTURE
Within England, the North East again led the way, with annual growth of 4.6% in the 12 months to December. At the other end of the table, London was the only English region to record an annual fall, with prices down 1.0%.
That divergence underlines the uneven nature of the market, with relative affordability and regional demand continuing to support parts of northern England while the capital remains under pressure.
MONTHLY SOFTENING
On a seasonally adjusted basis, UK prices edged down by 0.1% between November and December. On the headline non-seasonally adjusted measure, the fall was sharper at 0.7%, compared with a 0.2% decline in the same period a year earlier.
The latest survey evidence points to a market that remains subdued rather than turning decisively lower. The Royal Institution of Chartered Surveyors said its December 2025 residential market survey showed buyer demand and agreed sales still in negative territory.
The Bank of England’s agents also reported quieter conditions for both sales and new instructions, with achieved prices broadly flat on a year earlier and recent deals being agreed at lower levels relative to asking prices.
TRANSACTIONS AND APPROVALS
Transaction data offers a slightly firmer picture. HMRC estimates there were 100,000 UK residential transactions in December 2025 on a seasonally adjusted basis, 4.7% higher than a year earlier. Month on month, however, transactions were broadly flat, slipping by 0.1%.
On a non-seasonally adjusted basis, transaction volumes between November and December rose by 2.6% in England and 5.9% in Wales, but fell by 11.1% in Scotland and 4.5% in Northern Ireland.
Meanwhile, the Bank of England said mortgage approvals for house purchase fell by 3,100 to 61,000 in November, a sign that borrowing demand may soften further in the near term.
For property professionals, the December figures point to a market that is still registering annual growth, but at a slower pace and with little sign of a strong rebound in activity. Values are holding up better outside London, yet subdued buyer demand, softer monthly pricing and lower mortgage approvals suggest the market entered 2026 on cautious footing.
