UK house prices dropped unexpectedly by 0.4% in December, according to the latest figures from the lender Nationwide Building Society.
It found that house prices fell slightly in December compared with November, ending the year just 0.6% higher compared with the year before.
Economists polled by Reuters had forecast a 0.1% monthly rise, with an annual change of 1.2%.
Robert Gardner, Nationwide’s chief economist, said:
“UK house prices ended 2025 on a softer note, with annual price growth slowing to 0.6%, from 1.8% in November, the slowest pace since April 2024.
The high base for comparison can partly explain the slowdown (annual price growth was a solid 4.7% in December 2024), although prices fell by 0.4% month on month, after taking account of seasonal effects.”
Most regions across the UK reported modest house price growth in the final quarter of the year, with East Anglia the only region to post an annual decline of 0.8%. The strongest was Northern Ireland, where prices rose by 9.7% on annual basis.
The average price for a home in the UK was £273,077 in the final quarter of the year, Nationwide said. At the end of December, it was £271,068.
