UPDATE: New data reveals that house prices in the West Midlands are on the rise, outpacing the national average amid a general slowdown in the housing market. The average house price in the region now stands at approximately £251,000, marking a significant 2.3% increase compared to last year.
As the housing market closed out 2025, annual price growth dipped to just 0.6% in December, down from 1.8% in November, according to the latest index from Nationwide Building Society. This slowdown is the slowest since April 2024, with the national average price dropping to £271,068, reflecting a month-on-month decline of 0.4%.
In stark contrast, the West Midlands showcases resilience in its housing market, with growth that exceeds the national average. Robert Gardner, Nationwide’s chief economist, described the overall market as “resilient,” despite subdued consumer sentiment and higher mortgage rates.
Prices have surged notably in other regions as well, particularly in Northern Ireland, where house prices jumped by 9.7% annually, with an average value of £216,919. Meanwhile, London remains the priciest area, with an average property value nearing £529,372.
The West Midlands’ performance is particularly noteworthy as it reflects ongoing demand in the housing sector. The North West leads the regions with a 3.5% increase in average house prices, while the West Midlands continues to show strong activity despite the national trend.
Looking forward, experts predict that the housing market may see a slight uptick in activity as affordability improves. Gardner anticipates house prices could rise between 2% and 4% in the coming year, driven by income growth outpacing price increases and potential reductions in interest rates.
Analysts note that the traditional end-of-year slowdown was further exacerbated this December due to fiscal uncertainties following the recent Budget announcements. Ian Futcher, a planner at Quilter, remarked on the hesitance of buyers to commit during this period.
However, Mark Harris, CEO of mortgage broker SPF Private Clients, expressed optimism for the new year. He emphasized that declining mortgage rates could provide a much-needed boost to the housing market as lenders compete for business.
The general sentiment among property professionals is that stable house prices will foster confidence among buyers and sellers alike. Nicky Stevenson, managing director at Fine & Country, stated that with clearer policies expected from the government, the market is poised for a more sustainable phase as it heads into 2026.
As the new year approaches, stakeholders in the housing market are keenly watching for signs of revitalization, particularly as the spring selling season approaches. Buyers and sellers alike will be eager to navigate the evolving landscape, armed with new insights and potential opportunities in the coming months.
Stay tuned for further developments as the housing market continues to adjust to these changing dynamics.
