Published 19th December 2025

Executive summary

• Housing sales hit 1.2m in 2025 – the highest level for 3 years
• Mortgage rate stability, higher incomes and mortgage
affordability improvements support sales
• Sales are higher but UK price inflation slows to 1.1% (1.9% in 2024)
• First-time buyers are the largest buyer group in 2025 (39% sales)
• Desire to move remains strong, subject to affordability
• House prices projected to increase 1.5% over 2026
• Estimated housing transactions total 1.18m in 2026
• North-south divide in price inflation set to remain

See our London House Price Index and detailed price metrics for 65 cities.