Halifax says UK house prices fell slightly in December. We break down the key points and what they mean for buyers and homeowners.
The latest Halifax House Price Index shows that UK house prices dipped slightly in December, rounding off a fairly steady year for the property market.
According to the report published on 8 January, average UK house prices fell by 0.6% in December, following a small fall of 0.1% in November. The average property is now priced at £297,755, the lowest average since June 2025. On an annual basis, prices are still up, but growth has slowed to 0.3% compared with 0.6% in November.
A small monthly decline may sound concerning, but Halifax notes that overall housing market activity in 2025 remained resilient and broadly in line with pre-pandemic levels. The market has been quieter, but it hasn’t ground to a halt.
‘While the latest Halifax figures show a small dip in house prices at the end of the year, the broader picture remains one of a market that has stayed resilient, says MB Associates’ Sales & Operations Director, Les Pick.
Mortgage rates easing
There are also some more positive signs looking ahead. Mortgage rates have started to ease following the recent base rate cut to 3.75% in December. Lenders are offering more options, particularly for borrowers with smaller deposits. Importantly for first-time buyers, the house price-to-income ratio is now at its lowest level in over a decade, which could make buying slightly more achievable.
‘With mortgage rates starting to ease, more choice from lenders and affordability improving – particularly for first-time buyers – there are genuine reasons for cautious optimism in the year ahead,’ says Les.
Regional price differences
Regionally, Northern Ireland remains the strongest-performing area, with prices up 7.5% over the past year, while Scotland also saw solid growth of 3.9%. In contrast, prices in London fell by 1.3% over 2025, reflecting ongoing affordability pressures in the capital.
‘The modest fall in London prices during 2025 reflects ongoing affordability pressures in the capital, but it could also create welcome opportunities for buyers who have previously felt priced out,’ adds Les.
Halifax expects modest house price growth of between 1% and 3% this year, assuming affordability continues to improve and the wider economic picture remains stable.
Everyone’s circumstances are different, and local markets can behave very differently from national averages.
‘As ever, regional and personal circumstances vary, making tailored advice more important than ever,’ adds Les.
If you’re thinking about buying, moving, remortgaging or simply want to understand where you stand, we’re here to help with practical advice.