Halifax has reported a dip in house prices at the end of 2025, with its latest House Price Index showing values fell by 0.6% in December, following a 0.1% decline in November.
The average property price now stands at £297,755, down £1,789 on the previous month and the lowest level recorded since June.
Annual house price growth also eased, slowing to 0.3% in December from 0.6% in November.
Despite the late-year slowdown, Halifax said overall housing market activity across 2025 remained resilient and broadly in line with pre-pandemic averages.
Northern Ireland continued to outperform all other UK nations and regions, recording the strongest annual growth.
Regional data showed Northern Ireland remained the strongest-performing part of the UK, with average prices rising 7.5% over the past year to £221,062.
Scotland recorded annual growth of 3.9%, with average prices reaching £217,775, while Welsh property values increased by 1.6% to £230,233.
In England, the North East led annual growth at 3.5%, taking average prices to £181,798, followed by the North West with growth of 2.8% to £245,323.
London was the weakest-performing region, with prices falling 1.3% over the course of 2025 to £539,086.
Amanda Bryden, head of mortgages at Halifax, said: “While this may feel like a subdued close to the housing market in 2025, overall activity levels were resilient over the last year and broadly in line with the pre-pandemic average.
“Various forces are poised to somewhat buoy the market heading into 2026. While December’s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind.
“Further, mortgage rates are already reducing following the latest Base Rate cut and there are an increasing number of lending options available for those borrowing at a higher loan-to-value.
“While affordability pressures persist, the house price to income ratio was at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home.
“On this basis, and recognising the headwinds that may affect buying power – such as the slowing of wage inflation and flattening employment rates – we expect a modest rise in house prices during the year of between 1% and 3%.”
