UPDATE: House prices in the West Midlands are on the rise, defying a national slowdown in the housing market. New figures reveal that the average house price in the region has reached nearly £251,000, marking a substantial 2.3% increase compared to this time last year.
As the housing market ended 2025 on a “softer note,” the overall annual price growth slowed to just 0.6% in December, down from 1.8% in November, according to Nationwide Building Society. This slowdown represents the slowest increase since April 2024, with UK average house prices dipping to £271,068 in December, reflecting a 0.4% decline month-on-month.
The West Midlands stands out during this period of stagnation, showcasing an active housing market with growth that exceeds the national average. In contrast, regions like the North East report some of the lowest prices, averaging around £168,000, while London leads with the highest average at nearly £530,000.
Robert Gardner, Nationwide’s chief economist, stated, “Despite the softer end to the year, the word that best describes the housing market in 2025 overall is ‘resilient’.” He noted that even with subdued consumer sentiment and mortgage rates significantly higher than post-pandemic lows, mortgage approvals remained robust, close to pre-COVID levels.
Looking forward, Gardner anticipates a slight strengthening in housing market activity as affordability improves through income growth outpacing house price increases. Expectations for 2026 suggest an overall price increase of 2% to 4% across the UK.
In regional comparisons, Northern Ireland outperformed other areas with a remarkable annual price rise of 9.7%, while the average property value in East Anglia fell by 0.8%. Within England, the North West, encompassing areas like Cheshire and Greater Manchester, reported a 3.5% annual increase in house prices.
Market experts have weighed in on the current dynamics. Ian Futcher, a planner at wealth manager Quilter, pointed out that the seasonal slowdown seen in December was exacerbated by key fiscal decisions being postponed, leaving many potential buyers hesitant to act. Meanwhile, Mark Harris, chief executive of mortgage broker SPF Private Clients, expressed optimism about upcoming January sales, as lenders are expected to offer lower mortgage rates to stimulate the market.
As we transition into 2026, experts like Nicky Stevenson from estate agency Fine & Country predict a more stable market environment, driven by clearer policies and easing borrowing costs. Tomer Aboody, director at MT Finance, highlighted that the costs associated with moving are deterring many homeowners from selling, prompting them to invest in home improvements instead.
With these developments, the West Midlands’ housing market remains a beacon of activity amid broader national trends. As the traditional spring selling season approaches, observers are keenly watching how these factors will play out in the coming months.
Stay tuned for more updates as the situation evolves and impacts homeowners and potential buyers across the UK.
