17 December 2025
If you are covering the latest Government House Price Index, please see the following comment from Ian Futcher, financial planner at Quilter:
“The latest Government house price index shows the housing market largely stalled in October. UK house prices fell by 0.1% on a monthly basis, bringing the average price to £270,000. On a annual basis, prices rose by 1.7%.
“It’s important to note that the Government’s index is a lagging indicator. Other indices have already reported even greater stagnation in November, as many buyers and sellers paused plans ahead of the budget, waiting for clarity on future policy, which contributed to minimal movement in the market.
“Today’s inflation figures show a marked fall compared to last month, and combined with last week’s disappointing GDP data, the Bank of England’s Monetary Policy Committee looks poised to cut rates tomorrow. This would be welcome news for buyers, reinforcing confidence that mortgage rates will continue their gradual decline into the new year. Markets are already pricing in further cuts in 2026, which could bring more competitive deals to the market.
“The housing market has shown resilience throughout 2025 despite the ongoing challenges, but recent months have seen a clear slowdown. Looking ahead, greater certainty following the budget and falling interest rates should support more positive growth in 2026. However, many households will still be facing significantly higher monthly mortgage payments, meaning any recovery is likely to be modest for some time.”
