UK House Prices Show Regional Variations as Affordability Improves
According to Halifax data, UK house prices were broadly unchanged in November 2025 with an average price of £299,892, slightly up from £299,754 in October, setting a new record high for the Halifax index. Annual house price inflation cooled to 0.7% in November, down from 1.9% in October.
The regional picture shows a clear North/South divide. Prices fell in parts of the South of England, with London prices decreasing by 1.0% to £539,766, South East by 0.3%, and Eastern England by 0.1%. Meanwhile, prices increased in Northern regions: Northern Ireland saw an 8.9% annual increase to £220,716; Scotland rose 3.7% to £216,781; Wales increased 1.9% to £229,430; North West England was up 3.2% at £245,070, and the North East by 2.9% to £180,939.
Affordability improved, with mortgage costs as a share of income falling to their lowest level in approximately three years, marking the strongest affordability since late 2015. This comes amid reports that the economy has cooled ahead of the forthcoming Autumn Budget.
In retail, BDO reported that in-store sales rose by 1.3% in November, although they remain below inflation, indicating overall weaker sales volumes.
