UK house prices fell at year-end, Halifax says

Halifax reports UK house prices fell 0.6% in December to £297,755 and annual growth slowed to 0.3%; the lender says mortgage costs easing and reduced tax uncertainty could support modest gains in 2026.

Halifax reported that UK house prices fell at the end of 2025, recording the sharpest monthly drop in almost two-and-a-half years. The lender said average values fell 0.6% in December to £297,755, taking annual growth to 0.3%. Halifax attributed some of the late-year weakness to uncertainty after the November budget and earlier stamp duty changes. The report noted regional differences, with London weaker while parts of the north and Northern Ireland saw stronger annual growth. Key figures and context: - Average house prices fell 0.6% in December, to £297,755, according to Halifax. - Annual growth slowed to 0.3% in December. - Halifax said the November budget and earlier changes to stamp duty contributed to market uncertainty. - The lender expects modest house price increases in 2026 as mortgage costs ease and tax uncertainty fades. - Regional patterns varied: London ended 2025 weaker while some northern regions and Northern Ireland posted stronger gains. Summary: Halifax reported a notable monthly fall in prices at the end of 2025 and a slowdown in annual growth. The lender said budget-related tax changes had added uncertainty that weighed on demand. Halifax expects modest rises in 2026 as borrowing costs ease and the reported uncertainty diminishes, though it noted gains may be limited.