UK House Prices Defy Economic Headwinds with November Growth
The UK housing market demonstrated unexpected resilience in November, with official figures revealing a significant acceleration in price growth despite ongoing economic uncertainties and pre-Budget jitters.
Accelerating Annual Growth
According to the Office for National Statistics, annual house price growth increased to 2.5% in November, marking a notable rise from the 1.9% recorded in October. This upward momentum occurred against a backdrop of wider economic challenges that have characterised much of the housing sector throughout 2025.
The statistics body confirmed that the average UK house price reached £271,000 during the month, representing a substantial milestone for property values across the nation.
Regional Variations Across the UK
A detailed regional breakdown reveals considerable disparities in housing market performance:
- England saw property values increase to £293,000, representing 2.2% growth
- Wales experienced more modest growth of 0.7%, with average prices reaching £209,000
- Scotland recorded stronger growth of 4.5%, bringing average prices to £193,000
- Northern Ireland led regional growth with a substantial 7.1% year-on-year increase to £193,000 in the third quarter of 2025
England's Divergent Regional Picture
Within England, the regional landscape presented striking contrasts. The North East emerged as the strongest performer with house price inflation reaching 6.8%, significantly outpacing national averages.
Conversely, London continued its downward trajectory with a 1.2% decline in November. However, this represented a less severe contraction than the 2.6% drop witnessed in October, suggesting potential stabilisation in the capital's property market.
Rental Market Developments
The ONS data also shed light on the rental sector, revealing that average UK monthly private rents increased by 4% to £1,368 in the year to December. While still substantial, this growth rate showed signs of moderation, slowing from the 4.4% recorded in the previous month.
Industry Perspectives on Market Resilience
Property industry leaders expressed cautious optimism about the market's performance. Nathan Emerson, chief executive of Propertymark, commented: "Despite considerable political and economic uncertainty, it is positive to see the housing market deliver sustained momentum over the last 12 months."
He added: "As we further embark into 2026, there are encouraging signs that the housing market will continue to deliver growth. However, with inflation seeing a slight increase, there could be potential hesitation from the Bank of England regarding further dips in base rate in the short term or until conditions prove supportive."
Broader Economic Context
The housing data emerged alongside separate ONS figures revealing that wider inflation accelerated in November. The Consumer Price Index increased to 3.4% in December from 3.2% in November, driven primarily by tobacco duty changes and higher air fares.
Nicky Stevenson, managing director at Fine and Country, offered insight into seasonal market dynamics: "After the quieter months earlier in 2025, this healthy rise in prices suggests that buyer confidence held up well as we approached the tail end of the year. Despite concerns in the run-up to the Budget, the market stayed robust."
Stevenson further explained: "We often see an uptick of activity in November, as buyers and sellers aim to complete moves before Christmas so that they can start the new year with the excitement of a new house. That seasonal momentum, paired with good availability of stock across much of the country, appears to have helped underpin this modest rise."
The November figures suggest the UK housing market continues to navigate complex economic conditions with surprising resilience, though regional disparities remain pronounced and future growth may depend on broader economic stability and monetary policy decisions.
