December house price index reveals flat forecast
The latest house price index from mortgage lender Halifax has revealed a -0.6% dip in property values in December 2025, with the average property price now £297,755 – the lowest since June 2025.
Annual growth slowed to 0.3%, down from 0.6% in November.
Amanda Bryden, Head of Mortgages, said: “While affordability pressures persist, the house price to income ratio was at its lowest in over a decade in December, striking a positive note for those looking to purchase their first home.
“On this basis, and recognising the headwinds that may affect buying power – such as the slowing of wage inflation and flattening employment rates – we expect a modest rise in house prices during the year of between 1% and 3%.”
Northern Ireland continued as the strongest performing nation or region, with property prices growing by 7.5% over the year. In Scotland, values rose 3.9%, and 1.6% in Wales.
Construction activity declined in every month of 2025
The latest S&P Global UK Construction Purchasing Managers’ Index registered 40.1 in December 2025 – up from 39.4 in November but still below the neutral 50.0 value.
Construction output remained below 50.0 for the whole of 2025, with housing activity dropping in December to 33.5 from 35.4 in November.
Respondents cited fragile client confidence and subdued demand, resulting in reduced workloads towards the end of the year.
Meanwhile, the Builders Merchants Federation (BMF) has downgraded its annual growth forecast for 2025 from 1.4% to 2.5%, following a challenging third quarter.
Similarly, the BMF Winter Forecast Report sees a reduced projection for 2026, from 3.1% to 2.3%.
Developer and supply chain updates
Bloor Homes reported a 14% fall in pre-tax profit to £179.1m for the year to 30 June, marking a second consecutive annual decline.
Completions dropped 9% to 3,643 homes, but turnover held broadly steady at around £1.25bn.
The privately owned housebuilder said the figures reflect a more subdued delivery profile despite resilient revenues.
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Senior figures from across housing, planning and building safety have been recognised in the King’s New Year’s Honours list for their public service.
Paavan Popat, chief executive of TLC Care and a member of the Older People’s Housing Taskforce, received an OBE for services to intergenerational housing, alongside OBEs for Anna Rose of the Planning Advisory Service and Dr Hywel Davies of the Chartered Association of Building Engineers.
CBEs were awarded to Catherine Francis of MHCLG and Suzanne Rastrick of NHS England and Bournemouth Churches Housing Association, while MBEs went to Michael Scott of Osprey Housing and Stephen Kelly of Greater Cambridge Shared Planning Service.
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