Insight: The Housing Market - December 2025

Following a surprisingly buoyant market outlook last month, this month’s data is more in keeping with what we’d expect from the property market at this time of year, combined with the wider picture. There was considerable anticipation for the Budget. While there are few structural changes to the economic landscape purely in property terms, the wider impact of the Budget will affect affordability and people’s willingness to move. Kent is also disproportionately hit by the incoming ‘Mansion Tax’ because prices here are nearly double the national average. We’re yet to see how this will impact the Kent housing market.

It's also very typical for the housing market to be subdued at the end of the year. Few sales will now complete before Christmas, and chains that collapse around now, often see buyers and sellers choosing not to get moving again until the spring. As such, it’s testament to the market’s resilience that annual growth remains positive, but there is minimal monthly change from last month.

Let’s take a look at the data, both nationally and here in Kent.

The Headline Stats and Facts

• Average selling price: £299,892, a +0.0% change since last month.
• Property price increases: Annual rate of growth is +0.7%.
• Interest rates: 4%, since August.
• Inflation: 3.6%, down slightly from 3.8%, but above the Bank of England target of 2%.
• RICS net balance score: RICS data show a sluggish sales market. New buyer enquiries are at -24%, similar to last month. Agreed sales are -24%. New instructions are at -20%.

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 161 days on the market, almost identical to this time last year.
• Number of properties for sale: There are 22, 919 properties for sale in Kent, up marginally on last month.
• Average selling price in Kent: £428,827 down marginally from last month.

What Does This Mean?

Amanda Bryden, Head of Mortgages at Halifax, reflecting on the broadly unchanged data month on month, states, “This consistency in average house prices reflects what has been one of the most stable years for the housing market over the last decade. Even with the changes to Stamp duty back in spring and some uncertainty ahead of the Autumn Budget, property values have remained steady.”

Individual homeowners, looking to secure good prices on their properties shouldn’t be disappointed. Firstly, we always recommend looking at the longer-term picture when it comes to house prices. Zoom out and it’s still true that property remains an excellent investment. Secondly, in a subdued market, where properties are taking a little longer to shift, this makes it easier for first-time buyers to ignite chains, ensuring everyone benefits.

Additionally, it’s widely anticipated that further interest rate cuts are on the horizon. This will bolster affordability for many. The Halifax states that affordability is already at its strongest since 2015, with mortgage costs as a share of income at the lowest level in three years.

What About Kent?

While last month, Kent slightly bucked the trend with a +1.2% increase in house prices, this month, we’ve witnessed a small reduction. Again, we need to consider the broader picture. The trend remains a stable market, with minimal change.

As we move into 2026, we anticipate steady activity and steady growth, but no sharp spikes. It will be a picture of gradual progress.

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