House prices across the United Kingdom demonstrated unexpected resilience in November, registering a significant annual increase of 2.5% according to the latest official data. This acceleration in growth occurred despite prevailing economic headwinds and mounting concerns ahead of the government's Budget announcement.
Official Figures Paint a Picture of Market Resilience
The Office for National Statistics (ONS) confirmed that annual house price growth strengthened from 1.9% in October to 2.5% in November. This positive movement translated into a tangible rise in the average UK house price, which climbed to £271,000 for the month. This upward trend unfolded against a backdrop of continued challenges within the broader housing sector, making the gains particularly noteworthy.
Regional Disparities Highlight a Divided Market
A detailed regional breakdown reveals considerable variation in property value performance across the nations of the UK:
- England: Average prices increased to £293,000, representing a 2.2% annual rise.
- Wales: Property values reached £209,000, marking a more modest 0.7% increase.
- Scotland: Saw a robust 4.5% growth, pushing average prices to £193,000.
- Northern Ireland: Data for the third quarter of 2025 showed an average price of £193,000, reflecting a substantial 7.1% year-on-year surge.
Within England, the regional picture was equally mixed. The North East experienced the highest level of house price inflation at 6.8%. In stark contrast, London once again recorded the weakest performance, with prices declining by 1.2% in November. However, this represented a notable improvement from October's steeper 2.6% drop, suggesting the capital's market decline may be moderating.
Rental Market Shows Signs of Cooling
Alongside the house price data, the ONS also reported on the rental sector. Average monthly private rents across the UK rose by 4% to £1,368 in the year to December. While still increasing, this rate of growth has slowed from the 4.4% recorded in the previous month, indicating a potential easing of pressure on tenants.
Industry Reaction and Economic Context
Property industry leaders responded positively to the figures. Nathan Emerson, chief executive of Propertymark, noted the market's "sustained momentum over the last 12 months" despite considerable political and economic uncertainty. He expressed cautious optimism for continued growth in 2026 but warned that a recent slight uptick in inflation could cause hesitation at the Bank of England regarding further interest rate cuts in the immediate future.
This housing data emerged on the same day the ONS revealed that wider inflation, as measured by the Consumer Price Index (CPI), accelerated to 3.4% in December from 3.2% in November. This increase was reportedly driven by factors including tobacco duty and higher air fares.
Nicky Stevenson, managing director at Fine and Country, offered further insight, suggesting that buyer confidence held up well towards the end of 2025. "Despite concerns in the run-up to the Budget, the market stayed robust," she observed. Stevenson attributed part of the November uptick to seasonal factors, as buyers and sellers often aim to complete transactions before Christmas. She concluded that this seasonal momentum, combined with good availability of property stock across much of the country, helped underpin the modest price rise observed in the official statistics.
