UK Housing Market Slows Down as Sellers Reduce Prices for Second Consecutive Month

Written by Emily J. Thompson, Senior Investment Analyst

Source: Yahoo Finance

Updated: Dec 15 2025

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Source: Yahoo Finance

UK Home Prices Decline: Average asking prices for UK homes fell by 1.8% in December, marking the second consecutive month of price drops, influenced by market saturation and uncertainty surrounding a new taxation scheme.
Impact of Taxation and Market Activity: Anticipation of property tax changes contributed to subdued market activity, with new seller numbers and buyer demand decreasing in the latter half of the year compared to the first half.
Potential for First-Time Buyers: The decline in home prices may benefit first-time buyers in early 2026, although a forecast predicts a 2% increase in asking prices later in the year.
Mortgage Rates and Future Outlook: The average two-year fixed mortgage rate has decreased to 4.33%, and experts anticipate a more positive market environment in 2026, with expectations of increased activity and price growth.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.