Average UK house prices fall 0.1 per cent

17 December 2025

Hamza Behzad, Business Development Director at Finova

“As the UK property market adjusts to shifting economic pressures and cautious buyer sentiment, it’s no surprise that house prices are levelling out. Although the Chancellor’s decision to avoid a wider property tax on homes over £500, 000 may have offered some stability, it was not enough to offset wider affordability concerns, particularly for first-time buyers who are looking for properties at the lower end of the market.

“The lack of new first-time buyer support in the Budget has added an extra layer of hesitation for new homeowners, many of whom are now waiting to see what the Government brings forward in the new year. We cannot lean on a ‘one-size-fits-all’ to borrowers’ rapidly changing demands. In 2026, good guidance will be about providing bespoke support to all buyers, including those entering the housing market for the first time.”