Average Price
The average price of properties coming to the market for sale has fallen by 1.8% (-£6,695) this month to £358,138. However, prices often dip in December as many people are preoccupied with the festive season.
As buyer affordability is set to improve in 2026, Rightmove predicts stronger housing market activity, leading to modest upwards price pressure, and causing the average price of property coming to the market for sale to rise by 2% in 2026.
Supply & Demand
Buyer choice currently remains good, with buyer affordability set to improve.
The number of new sellers coming to market in the first half of 2025 was 9% ahead of the same period in 2024, similarly to buyer demand which was also 3% higher than 2024 across the first half. 2024 was an overall strong year for sales, with the number of sales agreed 3% higher than in 2024.
Interest Rates
Rightmove’s mortgage tracker shows that the average two-year fixed mortgage rate is now 4.33%, an improvement compared with the average of 5.08% at this time last year. Relaxing of mortgage lending criteria, and wage growth continuing to run ahead of inflation, will also support affordability in 2026, especially when combined with the 2025 price dips.
The current base rate set by the Bank of England stands at 3.75%, with the next meeting due on the 5th of February.
Regional Trends: North East
The average price for homes in the North East is £184,441, with a 0.8% decrease since the same period last year. On average, it takes 59 days to sell a property in the North East region.
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Source: Rightmove
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