UK House Prices Decline in December, Defying Forecasts

British house prices fell by 0.4% in December 2025, marking the weakest annual growth in nine months at just 0.6%. This unexpected decline contradicts economist forecasts and highlights a potential slowdown in the UK housing market.

Insights:
British house prices fell by 0.4% in December 2025, according to data from Nationwide Building Society , marking the weakest annual growth rate in nine months at just 0.6%. This decline contrasts sharply with economist forecasts, which had predicted a modest 0.1% monthly increase and a more robust 1.2% annual growth. The data suggests a potential deceleration in the UK's housing market momentum, even as mortgage rates continue to decline and affordability improves.
Buildings in the City of London stand next to Victorian residential homes in South London, Britain, on August 1, 2023. REUTERS/ Susannah Ireland
Buildings in the City of London stand next to Victorian residential homes in South London, Britain, on August 1, 2023. REUTERS/ Susannah Ireland
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