House prices in West Midlands are on the up - and new figures reveal they are rising faster than national average

The housing market ended 2025 on a "softer note," with annual price growth slowing to 0.6 per cent in December, from 1.8 per cent in November, according to an index

And in the West Midlands the average price of a house now stands at almost £251,000.

That figure is 2.3 per cent higher than at this time last year, with the region enjoying a growth that is higher than the national average.

The latest rise nationally was the the slowest since April 2024, Nationwide Building Society said. 

And prices actually fell by 0.4 per cent month-on-month typically, taking the average UK house price to £271,068 in December. 

The cheapest prices are to be found in the north east, with an average of around £168,000. That compares to the most expensive, in London, with an average of almost £530,000. The Welsh average is almost £214,000 and in the East Midlands around £238,000.

Here are average house prices in the fourth quarter of 2025 and the annual change : 

West Midlands , £250,865, 2.3 per cent

Northern Ireland , £216,919, 9.7 per cent 

North West, £225,665, 3.5 per cent 

Wales , £213,894, 3.2 per cent 

Yorkshire and the Humber, £212,110, 2.3 per cent 

North East, £168,317, 2.2 per cent 

Scotland , £190,649, 1.9 per cent 

Outer Metropolitan, £428,139, 1.4 per cent 

East Midlands , £238,183, 1.0 per cent 

London , £529,372, 0.7 per cent 

South West, £308,228, 0.5 per cent 

Outer South East , £336,561, 0.1 per cent 

East Anglia , £269,912, minus 0.8 per cent

Robert Gardner, Nationwide's chief economist, said: "Despite the softer end to the year, the word that best describes the housing market in 2025 overall is 'resilient'. 

"Even though consumer sentiment was relatively subdued, with households reluctant to spend and mortgage rates around three times their post-pandemic lows, mortgage approvals remained near pre-Covid levels. 

"Stamp duty changes that took effect at the beginning of April created volatility through the spring and summer. 

"Activity spiked in March as purchasers brought forward transactions to avoid paying additional tax and this led to some softness in the following months. 

"However, the underlying picture was little changed as demand held up well throughout." 

In regional figures, which cover the fourth quarter of 2025, East Anglia was identified as the only location in the index to record an annual fall in house prices. The average property value there fell by 0.8 per cent annually. 

Mr Gardner said: "At the other end of the spectrum, Northern Ireland continued to outpace the rest of the UK by a wide margin, with prices increasing by 9.7 per cent over the year." 

He continued: "Despite these significant price gains, house prices in Northern Ireland are still around five per cent below the all-time high recorded in 2007, while UK prices are almost 50 per cent higher over the same period." 

Within England, the North West, which includes areas such as Cheshire, Lancashire and Greater Manchester , was the top-performing region, with average house prices up by 3.5 per cent annually. But the 2.3 per cent growth in the West Midlands shows the housing market here is active.

Looking ahead, Mr Gardner said: "We expect housing market activity to strengthen a little further as affordability improves gradually via income growth outpacing house price growth and a further modest decline in interest rates." 

Nationwide expects prices to increase by around two per cent to four per cent across the year ahead. 

Ian Futcher, a planner at wealth manager Quilter said: "December rarely sees much momentum in the housing market. This year, that seasonal slowdown was amplified by the timing of the Budget.”

"With key fiscal decisions pushed later into the year, many prospective buyers and movers chose to put plans on ice until they had clarity on the policy landscape, before then allowing those plans to slip further as attention turned to the festive period." 

Mark Harris , chief executive of mortgage broker SPF Private Clients, said: "Hard-pressed borrowers will be hoping for January sales from lenders with lower mortgage rates as we kick off the new year - and the signs are promising. 

"The trend in new mortgage pricing was downwards in December with the ( Bank of England ) base rate reduction already priced in to many new deals. Lenders are keen to attract new business and get 2026 off to a strong start. 

"Market expectations are for another two or three base rate reductions this year. This will provide a welcome shot in the arm for the housing market." 

Nathan Emerson , chief executive of property professionals' body Propertymark, said: "Stable house prices provide a solid foundation for the year ahead, allowing buyers and sellers to make more informed decisions without the pressure of rapid price movements. As the market continues to adjust, this stability should support activity and confidence throughout 2026." 

Iain Mckenzie , chief executive of The Guild of Property Professionals, said: "We expect market momentum to strengthen in the new year as improved affordability and greater certainty encourage more buyers and sellers to make their move." 

Tomer Aboody , director of specialist lender MT Finance, said the cost of moving is "putting off many from doing so, choosing to stay put and improve existing homes instead. Stamp duty in particular is a barrier to mobility." 

Nicky Stevenson , managing director at estate agent Fine & Country, said: "As we move into 2026, the market appears well placed for a steadier, more sustainable phase. With greater policy clarity following the autumn Budget and borrowing costs expected to ease further, there are solid foundations for activity to pick up again once the traditional spring selling season gets underway."