Helping Landlords and Home Owners In The Market
The UK property market ended 2025 on a quiet note. According to Nationwide, house prices grew by just 0.6% in December — the weakest annual growth since April. Month-on-month, prices actually fell 0.4% after seasonal adjustments.
At first glance, that might sound concerning. But context matters. December 2024 saw strong growth of 4.7%, so this year's comparison is against a high baseline. The market has cooled, but it hasn't collapsed.
Why 2025 Was Actually a Good Year
What's more interesting than December's figure is how well the market performed throughout the year, despite some genuine headwinds.
Mortgage rates stayed roughly three times higher than their post-pandemic lows. Consumer confidence was shaky. Yet mortgage approvals remained near pre-COVID levels, and around 1.2 million homes were sold — the highest number since 2022.
Affordability improved steadily as wages rose faster than house prices, and mortgage rates gradually declined. That created opportunities, particularly for first-time buyers, who made up a larger share of the market than usual. High loan-to-value lending — where buyers need deposits of 15% or less — reached its highest level in over a decade.
The stamp duty changes in April caused a brief rush in March as buyers hurried to complete before new rates took effect, but the market recovered quickly and carried on.
The North East Outperformed
Regional variations matter, and the North East had a solid year. Northern England as a whole saw prices rise 2.3% year-on-year — comfortably ahead of the 1.7% UK average.
London, by contrast, managed just 0.7% growth. East Anglia was the only region to see prices fall, down 0.8% over the year. The North continues to offer better value and steadier performance than many parts of the South.
For anyone considering a move to this region, that combination of affordability and consistent growth remains appealing — especially when you factor in quality of life, space, and transport links.
Houses Outperformed Flats
The type of property also made a difference in 2025. Semi-detached homes led the way with 2.4% growth, followed by detached properties at 2.2% and terraced houses at 1.8%.
Flats were the exception, falling 0.9% over the year. The pandemic shift in buyer preferences — towards space, gardens, and flexibility — hasn't fully reversed. Rising service charges and maintenance costs have also made flats less attractive to buyers thinking about long-term value.
What's Next for 2026?
The outlook is cautiously positive. Nationwide expects house price growth between 2% and 4% this year, helped by rising wages, lower interest rates, and improving affordability. The Bank of England's December rate cut to 3.75% should support that.
Budget changes to property taxes won't have much immediate impact. The high-value council tax surcharge doesn't start until April 2028, and will only affect a small percentage of properties.
For now, the market feels more stable than it has in years. Prices aren't racing ahead, but they're not falling either. That steadiness, combined with better affordability, should keep things moving through the spring.
Thinking of Buying or Selling in Wynyard?
If you’re looking for guidance on Wynyard’s property market, our team is here to help. No one can predict the future with certainty, but at Anthony Jones Properties, we’re committed to helping you make the best decisions.
For expert advice, call us today on 01740 807107.
