HOUSE prices have fallen by 0.7% in the UK and rent price growth has slowed with experts saying now is the time to buy before prices start edging up again “very soon”.
Average UK house prices increased by 2.4%, to £270,000, in the 12 months to December 2025, down from 2.8%, in the 12 months to November 2025, according to official data published this morning.
Though average UK house prices decreased by 0.7% between November 2025 and December 2025, compared with a decrease of 0.2% in the same period 12 months ago.
Average house prices increased to £292,000 (1.7%) in England, £215,000 (5.0%) in Wales, and £191,000 (4.9%) in Scotland, in the 12 months to December 2025.
Meanwhile, average UK monthly private rents increased by 3.5%, to £1,367, in the 12 months to January 2026, down from 4% in the 12 months to December 2025.
Average rents increased to £1,423 (3.5%) in England, £826 (5.8%) in Wales, and £1,021 (2.6%) in Scotland, in the 12 months to January 2026.
In Northern Ireland, average rents increased to £875 (5.6%), in the 12 months to November 2025.
In England, private rents annual inflation was highest in the North East (8.0%), and lowest in London (1.1%), in the 12 months to January 2026.
Now is the time to buy
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said now is the time to buy before house prices start edging up again.
He added: “Falling swap rates are finally driving down fixed rate mortgage costs, which is pulling more and more buyers off the fence. With lender innovation improving access and rental growth squeezing tenants, ownership is becoming the smarter play.
“Despite economic gloom, this rate relief is the spark needed to reignite the market. Demand is already firming up, signalling a swift shift back to a sellers’ market and house prices rising is inevitable. If you’re considering buying, now is the time to do so as prices could start edging up again very soon.”
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said the figures are good news for aspiring homeowners.
She continued: “Slowing house price and rental growth is great news for aspiring homeowners, as less going out on rent means more money to save for a deposit, while a stalling market brings more properties into reach.
“The chances of first-time buyers getting onto the ladder are being further boosted by falling mortgage rates, with lenders competing very hard at higher loan-to-values. The one worry is that, with a Bank of England rate cut almost certainly incoming, sellers could once again get the upper hand. First-time buyers: be warned.”
We are in a stalemate
Patricia Ogunfeibo, founder & non-practicing solicitor at London-based tenant2owner, a UK platform helping tenants understand their chances of homeownership, said first-time buyers will benefit from falling prices.
She added: “House price growth slowing down may not be the best news for homeowners but it’s great news for those seeking to get that first step on the ladder. It’s starting to look like a very positive period for first-time buyers, who will enter spring with a huge amount of options available to them.
“First-time buyers are the target of most major lenders at the moment, who are cutting their rates in the battle to win their business, in some cases by up to 0.32%. If rates continue to edge down, which now looks likely following the fall in inflation to 3%, that further boosts affordability and will create a genuine path to homeownership for many aspiring buyers.
“What first-time buyers do need to be wary of, however, is that sellers could soon be back in the driving seat as cheaper mortgage rates will see demand increase.”
Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said barriers to people moving, such as stamp duty, is holding back the market.
He continued: “If falling house prices and rate cuts don’t get Britain moving, it’s because they’re not enough. Although there has been a flurry of activity from first-time buyers, those higher up the chain are usually faced with high barriers to move, the biggest of which is stamp duty.
“However, it is unlikely that anything will be done about this cash cow, given the fragility of the UK’s finances. We are in a stalemate.”
Zaman Sheikh, Director of Northwood Chelmsford and WN properties estate and lettings agents in Shenfield and Chelmsford, said he is expecting his busiest spring for years.
He added: “While this latest data shows a housing market under pressure, Wednesday’s cooling in inflation means a rate cut is now looking as good as certain.
“That, along with falling swap rates, will see demand for property rise again and with stronger demand, average prices should also bounce back soon, too. There is a lot of positive sentiment in the air and we’re bracing for perhaps the busiest spring period in some years.”
