Overview
- Nationwide reported a 0.4% month-on-month fall in December, slowing annual house price growth to 0.6% and putting the average home at £271,068.
- Yorkshire Building Society estimates about 390,324 first-time buyer mortgages in 2025, up 18% on 2024 and roughly 54% of all mortgage purchases.
- The Bank of England cut the base rate to 3.75% in December, with markets expecting further reductions that could lower mortgage costs this year.
- Nationwide and market analysts expect prices to stall in the near term, with 2026 house price growth broadly forecast in the 2% to 4% range.
- Regional outcomes diverged in 2025, with Northern Ireland up 9.7%, the North West up 3.5% and East Anglia down 0.8%, as spring stamp duty changes added volatility.