The UK housing market has recorded a modest annual price increase of 2.5% according to the latest official data, with property values showing signs of stabilisation rather than rapid growth. The Government's UK House Price Index for November 2025 reveals a complex picture of regional divergence alongside cautious national momentum.
National Trends and Average Values
Official statistics indicate that UK house prices rose by 2.5% in the twelve months to November 2025, representing an acceleration from the revised estimate of 1.9% growth recorded in the year to October 2025. On a month-to-month basis, average property values increased by 0.3% between October and November 2025, marking a notable reversal from the 0.3% decrease observed during the same period twelve months earlier.
The average property across the United Kingdom is now valued at £271,000, reflecting the gradual upward movement in the housing market. Property experts have been quick to contextualise these figures, emphasising that the market appears to be stabilising rather than experiencing any form of dramatic surge.
Stark Regional Divergence Emerges
The national figures conceal significant regional variations that paint a more nuanced picture of the UK property landscape. The North East of England has emerged as the standout performer, recording an impressive annual growth rate of 6.8% in the year to November 2025. This regional market has demonstrated remarkable resilience and momentum compared to other areas.
In stark contrast, London's property market has experienced a decline of 1.2% over the same annual period, highlighting the growing geographical divide in housing market performance. This regional disparity extends beyond the capital, with various parts of the country showing markedly different trajectories.
Expert Analysis of Market Conditions
Darryl Dhoffer, Founder at Bedford-based mortgage advisory firm The Mortgage Geezer, provided detailed commentary on the regional variations. "England's housing market in November 2025 reveals a stark divide," he observed. "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."
Dhoffer continued: "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 of approximately 2% annually."
He concluded with a forward-looking perspective: "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."
Cautious Optimism and Market Realism
Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, offered a similarly measured interpretation of the latest figures. "These figures don't signal a booming housing market," she cautioned. "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."
McGirr elaborated on the underlying dynamics: "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."
Looking ahead to the coming year, McGirr predicted: "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."
Market Outlook and Economic Context
The latest housing data suggests the UK property market is entering a period of consolidation following previous volatility. The combination of modest national growth, significant regional variations, and expert commentary pointing toward stabilisation rather than acceleration indicates a complex market environment.
Economic factors including mortgage pricing, regional affordability differentials, and broader economic uncertainty continue to influence market dynamics. The divergence between the North East's strong performance and London's decline highlights how local economic conditions and housing affordability are creating increasingly distinct regional property markets across the United Kingdom.
