UPDATE: House prices in the West Midlands are experiencing a significant surge, rising by 2.3% year-over-year to an average of £250,865, according to new data from Nationwide Building Society. This increase comes as the national average house price growth has slowed to just 0.6% in December 2025, a stark decline from 1.8% in November, highlighting a developing trend that is critical for potential buyers.
The latest figures reveal that while the national average house price has dipped to £271,068, the West Midlands stands out as a resilient market. This regional growth surpasses the national average, providing a glimmer of hope amidst a broader slowdown. The data indicates that the housing market ended 2025 on a “softer note,” with a month-on-month decline of 0.4% in prices, marking the slowest growth since April 2024.
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 emphasized that mortgage approvals remain close to pre-Covid levels, indicating sustained interest in home buying despite economic uncertainties.
The West Midlands is not alone in showing strength. Northern Ireland led the way with a remarkable 9.7% increase in house prices, while the North West, which includes Greater Manchester, saw a 3.5% rise. In contrast, regions like East Anglia faced declines, with an average property value drop of 0.8%.
Looking ahead, experts express cautious optimism. Gardner anticipates a slight strengthening of the housing market as affordability improves, driven by income growth outpacing rising house prices and a potential decrease in interest rates. Nationwide forecasts a price increase of between 2% and 4% for the upcoming year.
The market dynamics are further complicated by recent fiscal decisions. Ian Futcher, a planner at Quilter, noted that the delayed Budget decisions led many prospective buyers to pause their plans, impacting December’s momentum. However, Mark Harris, chief executive of SPF Private Clients, highlighted that lenders are already responding with lower mortgage rates, setting a promising tone for the new year.
As the housing market prepares for a potential rebound in early 2026, Nicky Stevenson, managing director at Fine & Country, believes the market is positioned for a steadier, more sustainable phase. She noted that with clearer policies following the autumn Budget and expected declines in borrowing costs, the conditions are ripe for increased activity as the traditional spring selling season approaches.
With house prices in the West Midlands defying national trends, potential buyers and sellers are encouraged to stay informed and ready as the market continues to evolve. As Tomer Aboody, director of MT Finance, pointed out, the cost of moving remains a barrier for many, leading homeowners to enhance their current properties instead.
Stay tuned for further updates as the housing market shifts and new opportunities arise in early 2026.
