Published by Global Banking & Finance Review®
Posted on January 2, 2026
1 min readLast updated: January 20, 2026
Add as preferred source on GoogleUK house prices fell 0.4% in December 2025, marking the weakest annual growth since April 2024. Economists had expected a slight rise, but affordability and mortgage rates impacted demand.
LONDON, Jan 2 (Reuters) - British house prices unexpectedly fell by 0.4% in December to finish 2025 just 0.6% higher than the year before, the weakest annual growth since April 2024, monthly figures from mortgage lender Nationwide Building Society showed on Friday.
Economists polled by Reuters had forecast a 0.1% monthly rise to leave prices 1.2% higher than in December 2024.
Prices in November had risen 0.3% on the month and were 1.8% higher than the year before.
Nationwide Chief Economist Robert Gardner said last month's weak annual growth rate partly reflected strong price gains in December 2024 and that the number of mortgage approvals remained similar to levels before the COVID-19 pandemic.
"With price growth well below the rate of earnings growth and a steady decline in mortgage rates, affordability constraints eased somewhat, helping to underpin buyer demand," he added.
Nationwide expected annual house price growth of 2-4% in 2026, he added.
(Reporting by David Milliken, Editing by Paul Sandle)
House price growth refers to the increase in the value of residential properties over time, typically measured on a monthly or annual basis.
Mortgage approvals are the process by which a lender evaluates a borrower's application for a home loan and decides whether to grant the loan.
Affordability in real estate refers to the ability of potential buyers to purchase a property based on their income, expenses, and the cost of the property.
The annual growth rate is a measure of the increase in value or size of an investment, asset, or economy over a year, expressed as a percentage.
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