Halifax HPI shows house prices stall with no rise in November: “Homeowners will be disappointed”

HOUSE prices have stalled with no rise in November with experts saying: “Homeowners will be disappointed.”

Property costs were broadly unchanged in November (+0.0%) after a +0.5% rise in October, according to the Halifax. 

Annual growth slowed to +0.7%, down from +1.9% in October, while the average property price is now £299,892, edging up to new record high.

The lenders said the slower rate of annual inflation largely reflects the impact of stronger growth a year ago, while regional data continues to show a clear North/South divide.

Northern Ireland remains the strongest performing nation or region in the UK, with average property prices rising by +8.9% over the past year and the typical home now costs £220,716.

Scotland recorded annual price growth of +3.7% in November, up to an average of £216,781. In Wales property values rose +1.9% year-on-year to £229,430.

In England, the North West recorded the highest annual growth rate, with property prices rising by +3.2% to £245,070, followed by the North East with growth of +2.9% to £180,939.

Further south, three regions saw prices decrease in November. In London prices fell by-1.0%, the South East by -0.3% and Eastern England by -0.1%. The capital remains the most expensive part of the UK, with an average property now costing £539,766.

Amanda Bryden, Head of Mortgages, Halifax, said: “Average house prices were broadly unchanged in November, edging up by £139 compared to October, with the typical property now costing £299,892. Annual growth has slowed to +0.7%, the weakest rate since March 2024, though this largely reflects the base effect of much stronger price growth this time last year.

“This consistency in average prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp Duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.

“While slower growth may disappoint some existing homeowners, it’s welcome news for first-time buyers. Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at their lowest level in around three years.

“Looking ahead, with market activity steady and expectations of further interest rate reductions to come, we anticipate property prices will continue to grow gradually into 2026.”

Shaun Sturgess, Director at Swansea-based Sturgess Mortgage Solutions, said: "Existing homeowners may rightly be disappointed by this data but it’s a boost for future homeowners as property is becoming slightly more affordable by the day.

"With mortgage lenders such as the Nationwide cutting rates quite aggressively yesterday, and the prospect of a base rate cut later this month, prices may well start to rebound in the New Year and so now could be a window of opportunity for buyers."

David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, agreed: "With property prices stagnating, the winners are first-time buyers trying to get that first step on the property ladder. Lenders have been innovating and bending affordability, so I’d expect 2026 to start strongly for aspiring homeowners."

But some said prices were still exceptionally high and that getting onto the ladder is still by no means easy. Chris Barry, Director at London-based Thomas Legal, said: "Average house prices at record highs shows the enormous gap between affordable and housing, which is out of reach for most.

“The highest end of the market hasn’t been moving for some time seeing huge price declines. While the mass market, especially in areas of the country with lower income to value ratios, are flying off the shelf."

Ben Perks, Managing Director at Stourbridge-based Orchard Financial Advisers, said the figures were sluggish.
 

He added: “If you’d offered me a stable year for property growth in January, I’d have snatched your hand off. Yes, the figures are pretty sluggish and uninspiring, but doesn’t that sum up 2025 as a whole. 

"All eyes now turn to the Bank of England who can add a little pace and thrill to 2026 by reducing the base rate this month. This will have an immediate impact and cause an uptick in house price over the first quarter next year. 

"The government then need to take a close look at the flatlining, low to no growth economy. They need to create confidence across all sectors, not just property.”

Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said: "House price growth now may be more linked to inflation than capital appreciation. Some lenders have cut rates to try and stimulate demand but it's all on the government to crack on towards their house building targets."

Riz Malik, Director at Southend-on-Sea-based R3 Wealth, said 2026 is looking more exciting.

He added: "We should see a lot more movement in the housing market in 2026. With further rate cuts anticipated and lenders eager to start the new year with a bang, we could see further price growth."