UK house price inflation hits five-month high despite Budget uncertainty

21st Jan 2026 10:37

(Sharecast News) - UK house price inflation picked up to a five-month high in November despite heightened uncertainty ahead of the Autumn Budget announcement, while rent price growth slowed slightly.

House prices averaged £271,000 over the 12 months to November, up 2.5% from the year before, compared with the 1.9% annual growth registered in the year to October.

That was the highest rate of year-on-year growth in house prices since July.

Speculation surrounding rumoured reforms to the housing market raised concerns that housing activity would slow down markedly ahead of the Budget announcement in late November. However, the only major changes were increases to high-value property taxes and levies on landlords - many of which won't come into effect until 2027 and 2028.

Average prices were 2.2% higher in England at £293,000, following a 1.5% annual gain in October, and up 4.5% in Scotland at £193,000, picking up from 3.8% growth previously. However, price inflation in Wales eased to just 0.7% from 1.4%, taking prices to £209,000.

Among English regions, the North continues to experience the highest rates of growth, with prices across the North East rising 6.8%, while the North West saw 4.1% gains and Yorkshire and the Humber experienced 3.7% growth.

In London, prices fell at an annual rate of 1.2%, as the capital continues to be the only major region to see house price deflation, though the decline eased from 2.6% in the 12 months to October.

As for the rental market, the average monthly private rent in the UK was £1,368 per month in December, up £52 or 4.0% from a year before. That was down from 4.4% growth in the 12 months to November.