UK House Price Growth Slows to 0.6% in December, Lowest Since April 2024

Annual Growth Rate Hits 20-Month Low

Annual house price growth in the United Kingdom slowed significantly in December 2025, reaching 0.6%, according to the latest data released by Nationwide Building Society. This figure represents the weakest annual growth rate recorded since April 2024. The average UK house price at the close of December stood at approximately £271,068.

The slowdown follows a 1.8% annual rise observed in November. On a monthly basis, prices experienced a 0.4% decline in December, after accounting for seasonal effects.

Market Resilience Amidst Headwinds

Robert Gardner, Nationwide's Chief Economist, noted that the deceleration in the year-on-year growth rate was partly attributable to a strong comparison base from December 2024, when annual price growth was a solid 4.7%. Despite the softer end to the year, Gardner characterized the 2025 housing market as 'resilient'. He highlighted that 'Even though consumer sentiment was relatively subdued, with households reluctant to spend and mortgage rates around three times their post pandemic lows, mortgage approvals remained near pre-Covid levels.'

Several factors contributed to the market's performance throughout 2025. Stamp duty adjustments introduced in April 2025 led to some volatility, with a surge in activity in March as buyers sought to complete transactions before potential tax changes, followed by a quieter period.

Regional Disparities and Property Type Performance

The Nationwide data revealed significant regional variations in house price growth across the UK:

• Northern Ireland emerged as the strongest performer, with prices increasing by 9.7% in 2025.
• East Anglia was the weakest region, experiencing an annual decline of 0.8%.
• London saw a modest annual growth of 0.7%.

In terms of property types, semi-detached homes recorded the largest price increases, rising by 2.4% year-on-year. Detached properties followed with 2.2% growth, and terraced houses saw an increase of 1.8%. Conversely, flats experienced a decline of 0.9% over the year.

Outlook for 2026

Looking ahead, Nationwide anticipates a modest strengthening of housing market activity in 2026. The building society forecasts annual house price growth to be in the range of 2% to 4%. This positive outlook is underpinned by expectations of improving affordability, as income growth is projected to outpace house price growth, alongside a further gradual decline in mortgage interest rates. The Bank of England reduced its main interest rate to 3.75% from 4% on December 18, with further cuts anticipated in the coming year.