2025 most stable year for house prices – Halifax

2025 was the most settled year for UK house prices over the last decade, with property prices expected to rise modestly in 2026.

Halifax housing market review reveals the average UK house price is now £299,892, a new record high. This compares to £297,671 a year ago, an increase of £2,221.

Property prices have so far fallen four times on a monthly basis during 2025 and risen on seven occasions.

Picture has improved compared to recent years

Amanda Bryden, head of Halifax Mortgages said: “2025 was one of the most settled years for UK house prices over the last decade. The average UK home now costs £299,892, up just +0.7% over the year, reaching a new record high price.

“The biggest talking point was the change to stamp duty thresholds in the spring, which led to a rush of buyers trying to beat the deadline. March was one of the busiest months ever for completed transactions, but this spike didn’t translate into a significant rise in prices, and activity levels soon returned to normal.

“While affordability remains challenging, the picture has improved compared to recent years, driven by a combination of above-inflation wage growth, lower interest rates and some expansion of eligibility criteria from mortgage lenders.”

According to the data, property prices for homes bought by first-time buyers rose by +1.1% over the last year, to an average of £236,836.

House prices to rise modestly

Ms Bryden adds whilst the Autumn Budget in November caused uncertainty, house prices remained steady.

She said: “The second half of the year was dominated by speculation about potential tax rises in the run-up to the Autumn Budget.

“While this kept market confidence subdued for a time, both prices and activity broadly held steady.

“Looking ahead to 2026, we expect house prices to rise modestly, by somewhere between 1% to 3%. While wage growth is expected to slow and unemployment may edge higher, lower interest rates and easing inflation should help to gradually improve homebuyers’ purchasing power.”