New data from Halifax, Britain's biggest mortgage lender, reveals a significant shift in the UK housing market, presenting a golden opportunity for those looking to get on the property ladder. While average house prices have climbed to a new record high, the balance between prices and earnings has tilted in favour of first-time buyers for the first time in nearly a decade.
Record Prices Meet Improved Affordability
According to the Halifax House Price Index, the average UK property price reached £299,892 in November, marking a marginal increase from the previous month. This represents a new all-time high for the market. However, the annual rate of growth has slowed considerably, easing to just 0.7% compared to a 1.9% rise recorded in October. Month-on-month, prices were broadly unchanged with 0% growth.
The critical insight from the report is that, when property prices are measured against average incomes, affordability is now at its strongest point since late 2015. This is a major boost for prospective homeowners who have been locked out of the market by soaring prices in recent years.
A North-South Divide and Positive Market Signals
Halifax highlighted a clear regional split in price movements. While values fell in London, the South East, and East of England, they continued to rise in other areas. Scotland and the North West of England saw increases, with Northern Ireland leading the UK with impressive growth of almost 9% over the year.
Amanda Bryden, Head of Mortgages at Halifax, stated: "While slower growth may disappoint some existing homeowners, it's welcome news for first-time buyers." She added that with steady market activity and expectations of further interest rate cuts, the lender anticipates property prices will continue to grow gradually into 2026.
Industry experts echo this cautiously optimistic sentiment. Mark Harris, Chief Executive of mortgage broker SPF Private Clients, noted that "affordability is improving as lenders ease criteria and reduce rates." This is putting ready buyers in a stronger position, especially after the uncertainty of the recent budget has passed.
Mortgage Costs Ease and a £300,000 Milestone in Sight
A key factor improving the landscape for buyers is the easing of mortgage costs. Halifax reported that, even with higher interest rates, mortgage costs as a share of income are at their lowest level in about three years. The average two-year fixed mortgage rate currently stands at 4.85%.
Anthony Codling, Managing Director of Equity Research at RBC Capital Markets, suggested that without the pre-budget uncertainty, the average price might already have breached the symbolic £300,000 mark. He predicts that with the Bank of England likely to cut interest rates soon, the milestone could be reached when December's figures are released.
The data suggests 2025 has been one of the most stable years for the housing market in the past decade. Estate agents report a post-budget bounce in activity, with viewing diaries filling up rapidly. This resilience, coupled with improving affordability, paints a picture of a market entering a new phase where first-time buyers finally have a clearer path to ownership.
