UK house prices have risen by 2.5% in one year and 0.3% since October 2025 – but property experts warned “prices are stabilising, not surging” and there is a “stark divide” between different regions.
The Government has released its UK House Price Index for November 2025 showing a small increase in the country.
UK house prices rose by 2.5% in the year to November 2025, up from the revised estimate of 1.9% in the 12 months to October 2025.
On a non-seasonally adjusted basis, average house prices in the UK increased by 0.3% between October 2025 and November 2025, compared with a decrease of 0.3% from the same period 12 months ago (October 2024 and November 2024).
The average property in the UK is now valued at £271,000.
The highest annual growth was in the North East, where prices increased by 6.8% in the year to November 2025 – while London actually saw a decline of 1.2%.
Stark divide
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said there was a “stark divide” between areas in the UK.
He added: “England’s housing market in November 2025 reveals a stark divide. While the national average nudged up 0.4% to £293,000, the North East has surged ahead, outstripping all regions with a massive 6.8% annual rise and a leading 1.8% monthly jump. In contrast, the rest of the country is certainly flattening out.
“High-value areas like the South East saw prices fall 0.8% this month, while London sits at -1.2% annually. The stagnation is widespread: the East of England (-0.7%) and East Midlands (-0.2%) both dipped monthly, and the South West and West Midlands managed only modest growth (~2% annually).
“The North East stands alone in maintaining true upward momentum. As we launch into 2026, I can see these trends continue, mainly due to economic uncertainty, which still bears its teeth from 2025.”
Heading in the right direction
Ken James, Director at London-based Contractor Mortgage Services, sees the figures as positive.
He continued: “From a jog to a sprint, UK homes are on the rise again. Growth since last October reflects an increase in buyer demand and lender rates continue to decrease, albeit at smaller margins than before. But they are still heading in the right direction with manageable borrowing costs and resilient economic fundamentals.
“We expect growth to remain modest through 2026, with regional variation and affordability continuing to shape outcomes. We are seeing lenders stabilising fixed rates and being creative with products for first-time buyers. This could all add fuel to buyer activity as the year progresses.
“We are not looking to break the speed barrier – gradual gains rather than boom-time spikes will be the way forward. This will allow for a more consistent housing market that’s healthy but constrained by economic fundamentals.”
Prices are stabilising, not surging
Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, said figures were actually worrying.
She added: “These figures don’t signal a booming housing market. They show a market cautiously exhaling after two years of holding its breath. A 2.5 per cent annual rise tells us prices are stabilising, not surging. Modest monthly growth and higher transactions point to pent up movers finally acting, helped by more predictable mortgage pricing and sellers accepting reality on price.
“This is not exuberance, it is adjustment. The regional split matters. Stronger growth in the North East reflects relative affordability and yield appeal, while much of the South remains constrained by stretched budgets and fragile confidence.
“For 2026, expect a market that moves sideways with purpose. Steady volumes, low single digit price growth, and buyers who are forensic, not fearful. Housing will reward realism, not optimism.”
Photo by Alex Harwood on Unsplash.
