---
title: "Nationwide Reports December House Price Decline as Annual Growth Slows to 18 Month Low"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2026-01-04T10:15:59+00:00"
modified: "2026-01-04T09:21:02+00:00"
date: 2026-01-04
canonical: "https://stockmark.it/nationwide-reports-december-house-price-decline-as-annual-growth-slows-to-18-month-low/"
category: "Property"
categories: ["Property"]
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format: "news"
language: "en-GB"
---

# Nationwide Reports December House Price Decline as Annual Growth Slows to 18 Month Low

**Published:** January 4, 2026
**Author:** Stockmark.IT Website
**Categories:** Property
**Featured image:** ![A two-storey suburban house with a brick exterior, two garage doors, arched windows, and a manicured lawn, with an estate agent’s sign on the front garden and trees lining the property. @ stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/2022/11/mortgage-st-2.jpg?fit=800%2C400&quality=89&ssl=1)

---

UK residential property prices declined in December compared to November, according to the latest data from Nationwide Building Society, resulting in the slowest rate of annual growth recorded in over 18 months.

The building society reported a month-on-month decline of 0.4% as 2025 concluded, bringing the average UK house price to £271,068, down from approximately £273,000 in November. This monthly decrease contributed to a significant deceleration in year-on-year growth, which slowed from 1.8% in November to just 0.6% in December, marking the weakest annual growth since April 2024.

Robert Gardner, Nationwide’s chief economist, attributed part of this deceleration to a high comparative base from December 2024, when annual price growth stood at a robust 4.7%. Despite the softer conclusion to the year, Gardner characterised the housing market throughout 2025 as “resilient”.

Gardner noted that mortgage approvals remained near pre-pandemic levels despite relatively subdued consumer sentiment and mortgage rates hovering around three times their post-pandemic lows. He observed that whilst households demonstrated reluctance to spend, underlying demand proved durable throughout the year.

The expiry of a stamp duty holiday at the beginning of April created notable volatility during the spring and summer months. Purchasers accelerated transactions in March to avoid additional tax liabilities, which subsequently resulted in a softer market in the following months. Gardner emphasised that the underlying market picture remained largely unchanged, with demand maintaining strength throughout the year.

Affordability constraints eased somewhat during the period, with price growth significantly below the rate of earnings growth and a steady decline in mortgage rates supporting buyer demand. First-time buyer activity remained above long-term averages, Gardner noted, facilitated by improved mortgage availability. The proportion of homes sold with high loan-to-value ratios, defined as deposits of 15% or less, reached the highest level in over a decade.

Regional performance varied considerably. East Anglia was the sole region to experience house price decline in the fourth quarter. The South East, South West and London recorded the weakest growth rates, with average house price growth across southern England standing at 0.6%.

Annual price growth in London remained particularly subdued throughout the year, with prices rising by just 0.7% in 2025, down from 2.0% in 2024.

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