House prices saw a surprise fall in December, according to Nationwide Building Society.
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Alamy
House prices saw an unexpected slump of 0.4 per cent in December, according to new figures.
The surprise fall meant the overall property costs finished 2025 just 0.6 per cent higher than they were one year ago.
According to Nationwide Building Society, the average price stood at £271,068 meaning a British home was worth less in the month of December than in the previous eight months.Â
In 2025 as a whole, prices edged up by 0.6 per cent, a £1,642 rise, and reached the highest point this year in May at £273,427 which was almost 1 per cent higher than where they finished the year.
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Prices fell by 0.4 per cent in December, taking them to £271,068 on average.
Picture:
Nationwide
However, some areas of the country still saw their house prices rise by nearly ten per cent.
Prices in the north west of England and Wales are up 3.2 per cent and three per cent respectively, but prices in East Anglia were down 0.8 per cent when comparing the final three months of this year with the last three months of 2024.
Property experts say the price slump could have been due to uncertainty and nerves around the Budget in November.
Sales that completed in December would likely have been agreed in the weeks and months before Rachel Reeves announced her speech, when the market slowed and buyers were able to negotiate big discounts.
Chief economist at Nationwide, Robert Gardner, said: “With price growth well below the rate of earnings growth and a steady decline in mortgage rates, affordability constraints eased somewhat, helping to underpin buyer demand.
“Indeed, the first-time buyer share of house purchase activity was above the long run average.”
“Over the last ten years, the price of a typical flat has increased by 18 per cent, less than half of the rise in the price of terraced houses, which saw a 41 per cent rise over the same period.Â
“This is partly a reflection of regional trends where London, which has a much greater proportion of flats, has underperformed the wider UK over the past decade.”
The figures showed that semi-detached houses saw the biggest percentage rise in prices during 2025, with average prices up 2.4 per cent year on year.
Meanwhile detached properties saw similar growth of 2.2 per cent, with terraced only marginally weaker at 1.8 per cent. However, flats saw a year-on-year decline of 0.9 per cent.