JA NUARY 2026
£781,000
£1,110,564
-9.6%
£623
£40.1bn
14,860
MORTGAGE APPROVALS (NOV)
64,530
0.5%
-2.1%
RESIDENTIAL TRANSACTIONS (OCT)
98,450
5.9%
-2.1%
GROSS MORTGAGE LENDING (NOV)
£23.7bn
2.3%
14.2%
52,548
-0.4%
3.5%
208,317
-
-4.8%
NEW HOMES BUILT (Q325) NEW HOMES BUILT (ANNUAL)
Source: Dataloft by PriceHubble, Bank of England, HMRC, ONS
FIRM FOOTING
The year begins on a solid footing, with the market set to benefit from the traditional post-Christmas uplift in activity. Supportive conditions and a more certain economic backdrop point to higher transaction levels and a brighter outlook for price growth in 2026. YEAR-END RATE CUT
DEMAND REMAINS HIGH
At its final meeting of the year, the Bank of England lowered the Bank Rate to 3.75%, bringing welcome news to many homebuyers ahead of the Christmas break. This means that the Bank rate is significantly lower than it was this time last year, when it was 4.75%¹. Mortgage rates have also been edging down, with the latest average 5-year fixed rate at 4.1% versus 4.4% a year earlier. Lower interest rates are improving buyer affordability. Alongside interest rates, economic growth is finishing the year stronger than last year too (1.9% anticipated for 2025 versus 1.1% in 2024)².
Demand to move home remains high, though affordability remains a key determinant of activity. The start of a new year is typically a time when many people reassess major life plans, and for UK homeowners, moving property is often among these ambitions. Around one in five homeowners wanted to move in the past two years but didn’t go ahead, often due to market uncertainty or rising costs5. However, improved market conditions are giving buyers renewed confidence as we move into early 2026.
SOFT FINISH TO THE YEAR STEADY ACTIVITY In the second half of 2025, uncertainty built up around potential property tax changes ahead of the November Budget, with rumours circulating from as early as August. Overall, activity held up as focused buyers continued to transact, with 64,530 mortgage approvals in November, just 2% lower than a year ago¹. Following the Budget, 47% of agents reported an uptick in sales activity³. Despite headwinds, 2025 has been a positive year for transactions, with 1.2 million homes sold, the highest level since 20224. Conditions for buyers have improved, with more stable mortgage rates, rising incomes, better affordability and the widest choice of homes in a decade helping to boost activity as we move into 2026. A stronger-than-usual start to 2026 is now expected, as buyers re-enter the market after both the Autumn Budget and the typical seasonal slowdown.
House prices eased a little at the tail end of the year to 0.6% annual growth after a strong start6. With the budget uncertainty now lifted and improving affordability, there is more scope to see house price growth shift a little higher this year. The market is expected to remain stable, with house prices forecast to rise by 2.4% through 2026². However, given the wide range of options available to buyers, sellers will still need to enter the market at realistic prices. Agents report that offers are frequently coming in below asking price, with 38% saying that sellers are accepting offers up to 5% under list price and another 38% noting offers are typically 5–10% under³. In England and Wales, the average price of a prime market property is £1,110,564, down by 9.6% year-on-year. Regional variation is clear, with Scotland and the North West in positive growth, while London and the South of England are experiencing the strongest declines. ¹ Bank of England, ² HM Treasury, ³ PriceHubble subscriber poll, 4 Zoopla, 5 Home Owners Alliance 2025, 6 Nationwide
£550,000 £762,982 +0.5% £353
£421,000 £551,745 -1.9% £296
£535,000 £721,885 +0.1% £378
£579,000 £752,498 -2.1% £379
£525,000 £675,988 -4.4% £331
£477,000 £612,506 -3.2% £330
£722,000 £944,230 -8.7% £465
£508,000 £668,907 -2.3% £347
£793,000 £1,049,699 -6.1% £522 £902,000 £1,250,091 -9% £557
£1,430,000 £2,263,513 -16.8% £1,146
Source: Dataloft by PriceHubble, Land Registry. *Based on properties listed to sell over the past 12 months, recorded by Information Works
0% -1.5% -3% -4.5% -6% -7.5% -9% -10.5% -12% DEC 2024
JAN 2025
FEB 2025
MAR 2025
APR 2025
MAY 2025
JUN 2025
JUL 2025
AUG 2025
SEP 2025
OCT 2025
NOV 2025
Source: Dataloft by PriceHubble, Land Registry.
£1,200 £1,050
£ 996
£900 £750
£ 728
£600 £450
£ 560
£ 570
DETACHED
SEMI-DETACHED
£ 623
£300 £150 £0
TERRACED
FLAT/APARTMENT
ALL PROPERTY
Source: Dataloft by PriceHubble, Land Registry.
24% 16% 8% 0% -8% -16% -24% -32% -40%
NOV 2024
DEC 2024
JAN 2025
FEB 2025
MAR 2025
APR 2025
MAY 2025
JUN 2025
JUL 2025
AUG 2025
SEP 2025
OCT 2025
Source: Dataloft by PriceHubble, Land Registry.
£281,616 £781,000 £1,110,564
£232,147 £708,000 £1,039,022
£227,836 £662,000 £991,246
£276,565 £651,000 £880,627
£430,987 £986,000 £1,421,591
£292,942 £796,000 £1,121,244
4.8% 4.2% 3.6% 3% 2.4% 1.8% 1.2% 0.6% 0% DEC 2024
JAN 2025
FEB 2025
MAR 2025
APR 2025
MAY 2025
JUN 2025
JUL 2025
AUG 2025
SEP 2025
OCT 2025
NOV 2025
Source: Dataloft by PriceHubble, Land Registry.
£400 £350 £300
£ 356
£ 336
£ 302
£ 295
£250
£ 260
£200 £150 £100 £50 £0
DETACHED
SEMI-DETACHED
TERRACED
FLAT/APARTMENT
ALL PROPERTY
Source: Dataloft by PriceHubble, Land Registry.
78
77
75
72
72
70
69 66
68 66
65
64
63
63
62
60
59
59
APR 2025
MAY 2025
64
60
57 54 NOV 2024
DEC 2024
JAN 2025
FEB 2025
MAR 2025
JUN 2025
JUL 2025
AUG 2025
SEP 2025
OCT 2025
NOV 2025
Source: Dataloft by PriceHubble, Rightmove.
48 42 36 30 24 18 12 6 0
NOV 2024
DEC 2024
JAN 2025
FEB 2025
MAR 2025
2026-01-05
APR 2025
MAY 2025
JUN 2025
JUL 25
AUG 25
SEP 25
OCT 25
NOV 25