Housing - Nov 2025

Economy Headlines

The Bank of England has held interest rates at 4% in its November meeting.

Monthly GDP grew by 0.1% in the three months to September, following growth of 0.2% in August 2025 (ONS).

The Consumer Prices Index (CPI) rose by 3.6% in the 12 months to October, down from 3.8% in September which was in line with expectations (ONS).

House prices

Average house prices across the UK were £271,531 in September, which is 2.6% higher than a year ago although 0.6% lower than in August (ONS).

The average price of property coming to the market fell by 1.8% this month to £364,833, a larger-than-usual November drop (Rightmove).

House price inflation is forecast to finish the year between 1% and 1.5% (Zoopla).

Transactions

There were 98,450 transactions in October, a 2% monthly rise but down -2% year-on-year (HMRC).

In the latest RICS survey, the near-term sales expectations are broadly flat, with a net balance of -3%, albeit improved from -10% the previous month.

The number of sales being agreed in the year to date is 4% higher than the same period in 2024 (Rightmove).

Demand

There were 65,944 mortgage approvals in September which is 0.5% higher than a year ago (Bank of England).

Buyer demand is down by 12% compared to a year ago (Zoopla).

A net balance of -24% was returned for the RICS new buyer demand series in October, marking the weakest reading since April.

Investment/lettings

The average void period lengthened in October, rising from 16 days in September to 21 days (Goodlord).

Rents are forecast to increase by 3-4% over 2025 as slower growth in large cities is offset by faster growth in more affordable markets (Zoopla).

The average rent in October was £1,345, up 1.4% year on year (HomeLet).

Development

Over 208,317 new homes were built in the year to the end of Q3 2025, a fall of 5% compared to the previous 12 month period (DLUHC).

There are now over 132,295 completed Build to Rent units, an uplift of 12% nationally, year on year (BPF).

The HBF says that to meet the government's target of building 370,000 homes annually, approvals must increase by over 150%.