House price growth in 2025 ended on a "softer note", Nationwide has stated, as the average house price increased by 0.6% in the year to December to £271,068.

The latest figure, which is the slowest growth rate since April, follows a 1.8% year-on-year jump in the average house price in November.

In its latest house price index, the building society found that the average house price in the UK fell by 0.4% month-on-month in December, following an increase of 0.3% in the month prior.

Despite the softer end to the year, chief economist at Nationwide, Robert Gardner, described the 2025 housing market as "resilient".

He stated: "Even though consumer sentiment was relatively subdued, with households reluctant to spend and mortgage rates around three times their post pandemic lows, mortgage approvals remained near pre-COVID levels.

"Stamp duty changes that took effect at the beginning of April created volatility through the spring and summer. Activity spiked in March as purchasers brought forward transactions to avoid paying additional tax and this led to some softness in the following months. However, the underlying picture was little changed as demand held up well throughout."

Nationwide revealed that for the third consecutive year, Northern Ireland was the best performing country in the UK in terms of house price growth, as the average house price increased by 9.4% year-on-year in the fourth quarter to £216,919.

Scotland (£190,649) and Wales (£213,894) also recorded year-on-year house price increases of 1.9% and 3.2% respectively.

East Anglia was the only region in England to report a drop in its average house price in the fourth quarter, falling by 0.8% year-on-year to £269,912. Meanwhile, the North West was the best performing English region, with house prices increasing by 3.5% to £225,665.

London remains the most expensive region to buy a property at the end of 2025, with the average house price standing at £529,372, which is a 0.7% year-on-year jump.

Chief executive officer at Propertymark, Nathan Emerson, concluded: "Aspiring and current homeowners will no doubt have felt reassured heading into the end of the year, with falling inflation and base rates improving affordability and helping more buyers consider their next move during 2026.

"Given the number of policy and economic changes the housing market experienced throughout 2025, including legislative updates, mortgage rate fluctuations, and the Autumn Budget, a period of price stability is an encouraging outcome.

"Stable house prices provide a solid foundation for the year ahead, allowing buyers and sellers to make more informed decisions without the pressure of rapid price movements. As the market continues to adjust, this stability should support activity and confidence throughout 2026."

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