The UK housing market demonstrated unexpected resilience in November, with official statistics revealing a significant acceleration in price growth despite ongoing economic headwinds and pre-Budget jitters.
Official Figures Show Sustained Momentum
According to the Office for National Statistics (ONS), annual house price growth increased to 2.5% in November, marking a notable rise from the 1.9% recorded in October. This acceleration occurred against a backdrop of continued challenges within the housing sector and broader economic uncertainty.
The statistics body reported that the average UK house price climbed to £271,000 for the month, representing a substantial increase that defied many market expectations. This positive movement suggests underlying strength in property demand despite various pressures.
Regional Variations Across the UK
The ONS data revealed significant regional disparities in property performance. In England, average property values increased to £293,000, representing a 2.2% year-on-year rise. Wales saw more modest growth of 0.7%, bringing average prices to £209,000.
Scotland experienced stronger growth at 4.5%, with average house prices reaching £193,000. Northern Ireland, using third-quarter 2025 data, showed the most robust performance with a 7.1% annual increase, bringing average prices to £193,000.
England's Divergent Regional Picture
Within England, the North East emerged as the strongest performer, recording house price inflation of 6.8% - the highest level across all regions. This continued the trend of northern regions outperforming southern counterparts in recent months.
London once again recorded the weakest performance, with prices declining by 1.2% in November. However, this represented a less severe contraction than October's 2.6% drop, suggesting the capital's market might be stabilising after a period of adjustment.
Rental Market Shows Slowing Growth
Alongside the house price data, the ONS revealed that average UK monthly private rents increased by 4% to £1,368 in the year to December. While still representing significant growth, this marked a slowdown from the 4.4% increase recorded in the previous month, indicating potential moderation in rental inflation.
Industry Reaction and Analysis
Nathan Emerson, chief executive of Propertymark, commented on the figures: "Despite considerable political and economic uncertainty, it is positive to see the housing market deliver sustained momentum over the last twelve months. As we further embark into 2026, there are encouraging signs that the housing market will continue to deliver growth."
Emerson added a note of caution regarding monetary policy: "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."
Nicky Stevenson, managing director at Fine and Country, offered additional perspective: "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."
Stevenson highlighted seasonal factors: "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."
Broader Economic Context
The housing data emerged alongside separate ONS figures showing wider inflation accelerated in November. The Consumer Price Index (CPI) lifted to 3.4% in December from 3.2% in November, driven primarily by tobacco duty increases and higher air fares.
This broader inflationary context creates a complex environment for the housing market, with potential implications for interest rate decisions and buyer affordability in the coming months. The relationship between general inflation and property market performance will be closely watched by analysts and policymakers alike.
The November figures suggest the UK housing market continues to demonstrate remarkable resilience despite multiple challenges, though regional variations remain pronounced and future performance will depend on numerous economic and policy factors.
