Overview
- Nationwide’s index showed a 0.4% monthly decline in December versus forecasts for a 0.1% rise, leaving the average price at £271,068 and year-on-year growth at the weakest since April 2024.
- The lender attributes 2025’s volatility to stamp duty and other property tax changes that pulled deals into March and left activity softer through spring and summer.
- Mortgage approvals held near pre‑Covid levels despite subdued sentiment and mortgage rates still far above their pandemic lows.
- First‑time buyers took an above‑average share of purchases, with loans requiring deposits of 15% or less at their highest proportion in a decade.
- Regional divergence remained pronounced, with prices up 9.7% in Northern Ireland, up 3.5% in the North West, and down 0.8% in East Anglia, while the BoE’s December rate cut to 3.75% and expected further easing are seen supporting activity this year.