House prices are expected to see a gradual increase next year following a recent slowdown, according to industry experts. Data from the Halifax, a prominent mortgage lender, reveals that average property prices remained largely unchanged in November, inching up by a mere £138 to reach a new record high of £299,891, nearly touching the £300,000 mark.

Economic analysts attribute this sluggish growth to nervousness surrounding the upcoming Budget. However, with the possibility of another rate cut by the Bank of England as early as this month, experts anticipate a resurgence in price growth in the beginning of 2026.

While national prices have held steady, there are notable regional disparities. Northern Ireland, for instance, saw a significant surge of nearly 9% in average property prices year-on-year, reaching £220,716. Conversely, Greater London continued to struggle, with average prices dropping by 1% to £539,766 in the same period.

The overall annual growth rate in house prices across the UK decelerated sharply last month, decreasing from 1.9% to 0.7%. Amanda Bryden, head of mortgages at the Halifax, noted that this was the weakest growth since March 2024, largely influenced by the stronger growth seen in the previous year.

Looking ahead, with stable market activity and expectations of further interest rate reductions, experts anticipate a gradual increase in property prices through 2026. Scotland recorded a 3.7% annual house price growth in November, with the average property value standing at £216,781. Wales also experienced a 1.9% year-on-year increase, reaching an average value of £229,430. In England, the North West registered the highest annual growth rate, with property prices climbing by 3.2% annually to £245,070.

Industry leaders point out that the housing market has displayed notable resilience in 2025, with regional disparities in performance. The availability of more homes in the market compared to the previous year has provided buyers with increased options, moderating short-term price growth.

Despite uncertainties, including inflation and the labor market, experts remain cautiously optimistic about the property market’s outlook. The anticipation of a potential rate cut and declining mortgage rates could provide a boost, especially for first-time buyers. Overall, the market is expected to see a modest recovery in the near future.