House prices increased by 2.5% in November despite Budget concerns

Annual house price growth lifted to 2.5% in November, according to official figures.

The Office for National Statistics (ONS) reported the increase from 1.9% in October.

It said the average house price across the UK rose to £271,000 for the month, despite continued challenges in the housing market.

Property values increased to reach £293,000 (2.2%) in England, £209,000 (0.7%) in Wales, and £193,000 (4.5%) in Scotland.

The average house price in Northern Ireland in the third quarter of 2025 was £193,000, representing a 7.1% year-on-year increase.

Within England, the North East saw the highest level of house price inflation at 6.8%, while London once again saw the lowest rate, with a 1.2% decline for the month.

Nevertheless, this represented a less steep fall after London witnessed a 2.6% drop in October.

The statistics body also revealed that average UK monthly private rents rose 4% to £1,368 in the year to December, slowing from 4.4% in the previous month.

Nathan Emerson, chief executive of Propertymark, said: “Despite considerable political and economic uncertainty, it is positive to see the housing market deliver sustained momentum over the last 12 months.

“As we further embark into 2026, there are encouraging signs that the housing market will continue to deliver growth.

“However, with inflation seeing a slight increase, there could be potential hesitation from the Bank of England regarding further dips in base rate in the short term or until conditions prove supportive.”

It came after the ONS revealed earlier on Wednesday that wider inflation accelerated in November.

Data showed that Consumer Price Index (CPI) inflation lifted to 3.4% in December, from 3.2% in November, driven by tobacco duty and higher air fares.

Nicky Stevenson, managing director at Fine and Country, said: “After the quieter months earlier in 2025, this healthy rise in prices suggests that buyer confidence held up well as we approached the tail end of the year.

“Despite concerns in the run-up to the Budget, the market stayed robust.

“We often see an uptick of activity in November, as buyers and sellers aim to complete moves before Christmas so that they can start the new year with the excitement of a new house.

“That seasonal momentum, paired with good availability of stock across much of the country, appears to have helped underpin this modest rise.”