UK house price growth slowed to 0.6% in the year to December 2025, down from 1.8% in the year to November, according to Nationwide’s latest house price index.
The 0.6% figure is the lowest annual rate since April 2024, the lender said. The typical house price is now £271,068, according to Nationwide figures, down from £272,998 in November 2025.
House prices fell by 40bps in the month of December 2025, compared to a rise of 30bps in the month of November.
Nationwide said the fall was partly skewed by unusually high house price growth of 4.7% in December 2024.
However, Nationwide described the overall 2025 housing market as resilient.
Nationwide chief economist Robert Gardner said: “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.
“Stamp duty changes that took effect at the beginning of April created volatility through the spring and summer. Activity spiked in March as purchasers brought forward transactions to avoid paying additional tax and this led to some softness in the following months. However, the underlying picture was little changed as demand held up well throughout.”
Nationwide said the first-time buyer market in 2025 was well above average, supported by easier credit. The lender said its 2025 proportion of high LTV lending hit its highest level for over a decade.
Regionally, Northern Ireland marked the highest house price growth for the third year running, with property values up 9.7% in 2025.
The region with the lowest house price growth was East Anglia, with prices dropping by 0.8% over the year.
Scotland saw annual growth of 1.9% while Wales saw prices increase by 3.2%.
Nationwide expects house price growth of 2% to 4% in 2026, assuming incomes continue to grow faster than house price inflation and interest rates continue to fall.
Amy Reynolds, head of sales at estate agents Antony Roberts, said: “A fresh new year and the expectation of continued lower mortgage rates should help restore buyer confidence post-Budget and improve transaction numbers.
“There is more optimism and a feeling of relief now that the Budget is over. We do not expect huge price rises and a racing market, more a return to the ‘normal’ pre-Budget market which has been on hiatus while everyone waited to see what the Government would roll out.”
