UK Property Prices Stagnate, Northern Ireland Sees Surge

Average property prices in the UK experienced a slight stall in November, according to data from mortgage lender Halifax. The average price rose by just £138 to a new record high of £299,989, inching closer to the £300,000 mark. Economists attribute the stagnation to “jitters” ahead of the upcoming Budget, but some regions are witnessing significant growth, particularly in Northern Ireland, where prices surged nearly 9% year-on-year.

Despite the national average remaining steady, the dynamics vary widely across the UK. In Northern Ireland, the average property price reached £220,716, reflecting a growth rate of 8.9% compared to the previous year. This increase is largely attributed to a shortage of available homes, with recent reports from Danske Bank indicating that planning applications in the region are at their lowest since 2002. The demand for housing continues to outpace supply, driving prices upward.

In contrast, Greater London continues to grapple with declining prices, which fell 1% last month to an average of £539,766. The overall annual growth in property prices across the UK has slowed sharply, dropping from 1.9% in October to just 0.7% in November—the weakest growth since March 2024.

Regional Disparities in the Housing Market

Amanda Bryden, head of mortgages at Halifax, remarked that the current market conditions reflect a base effect from stronger price growth observed a year ago. She stated, “Even with the changes to stamp duty back in spring and some uncertainty ahead of the autumn Budget, property values have remained steady.” This stability may be encouraging for first-time buyers, as affordability has improved to its best level since late 2015.

Looking ahead, Bryden anticipates that property prices could gradually increase, especially with expectations of further interest rate cuts from the Bank of England in the near future. “Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years,” she added.

In Scotland, average property prices rose by 3.7%, reaching £216,781 in November. Wales also saw an increase, with average values climbing 1.9% to £229,430. The North West of England recorded the highest annual growth rate at 3.2%, bringing average property prices to £245,070.

Jason Tebb, president of OnTheMarket, highlighted the resilience of the housing market in 2025, noting that national averages mask significant regional disparities. He stated, “The market is performing stronger in the north than the more expensive south, where affordability is more of an issue.”

Future Outlook and Challenges for Buyers

Iain McKenzie, chief executive of The Guild of Property Professionals, emphasized that increased supply is influencing market conditions. “Buyers have more choice than they’ve had in years, and that increase in supply is naturally keeping a lid on price growth in the short-term,” he explained.

Karen Noye, a mortgage expert at wealth manager Quilter, mentioned that the market is beginning to stabilize post-Budget. “Affordability remains the biggest hurdle,” she noted. While inflation has eased and expectations for a rate cut in December grow, mortgage pricing remains sensitive to shifts in global financial conditions.

Sarah Coles, head of personal finance at Hargreaves Lansdown, expressed a cautious optimism for the new year. “The new year could see things pick up a little,” she stated, pointing to rising wages and falling mortgage rates as potential catalysts for recovery in the housing market.

As 2026 approaches, the UK housing market is likely to witness a mix of caution and opportunity, with regional variations shaping the experiences of buyers and sellers alike. The challenge will be navigating the uncertain economic landscape while seizing the potential for gradual price growth in the months to come.