Are these the best UK shares to watch in December 2025?

In 2025, the UK economy has continued to deliver a more resilient picture than many expected. Growth moderated after a strong start to the year, with GDP rising 0.7% in the first quarter before easing to 0.3% in the second. Although activity is set to cool through the remainder of the year, the slowdown has been far milder than feared, helped by steadier consumer spending and easing financial conditions.

The labour market is still softening, but in a more orderly fashion. Pay growth has moderated, vacancies have drifted lower and unemployment has edged higher, yet the adjustment remains gradual rather than abrupt.

Inflation has continued to slow, falling to around 3.6% recently, allowing the Bank of England to maintain Bank Rate at 4% while signalling that cuts are likely to resume once disinflation is more firmly entrenched. Markets still expect a lower rate environment ahead, though policymakers have stressed that the pace of easing will remain measured.

Against this backdrop, UK equities have delivered one of their strongest years in more than a decade. The FTSE 100 has rallied to record highs, supported by falling gilt yields, robust corporate earnings and renewed global interest in undervalued UK assets. Investors have increasingly looked past the modest growth backdrop, focusing instead on attractive valuations, strong cash generation and improved clarity on the rate path.

Best UK shares to watch

​The UK market continues to show resilience despite mixed economic data. The FTSE 100 has eased slightly from record highs, but optimism around interest-rate cuts and steady corporate earnings has kept investors engaged. With rate expectations shifting and dividend yields remaining attractive, here are five UK shares we think could be worth watching in November 2025.

Open an account and trade some of the best UK stocks now

1. Safestore
2. Endeavour Mining
3. Energean
4. Victrex

Top value stocks

Value: Safestore Holdings

Safestore, trading with a valuation multiple around 5.5, continues to screen attractively for value-focused investors. Self-storage remains one of the more resilient property sub-sectors, supported by structural demand, high occupancy stability and pricing power even in slower economic conditions. The company has expanded steadily through disciplined acquisitions and development, with strong cash generation and a robust balance sheet. While the broader UK property sector has been pressured by higher rates, sentiment has begun to stabilise as the rate outlook turns more supportive. Safestore’s combination of defensive earnings, long-term demand drivers and an unusually low valuation makes it a standout value name this month.

Top growth stocks

Growth: Endeavour Mining

Endeavour Mining’s growth profile is underlined by its low multiple of 0.16 relative to net asset value, reflecting investor caution after operational setbacks and governance changes. Yet the company retains one of the strongest production and project pipelines in the West African gold space. With gold prices elevated and new assets ramping up, Endeavour offers meaningful upside if execution continues to improve. Market sentiment has strengthened recently as balance-sheet repair and asset optimisation progress. For growth investors seeking leveraged exposure to gold and near-term production increases, Endeavour remains an interesting, albeit higher-risk, opportunity.

Top dividend stocks

Dividend: Energean

Energean stands out with a yield around 10.1%, supported by rising production from its flagship Karish field and improving cash flow visibility. The company’s gas-weighted portfolio provides defensive earnings characteristics, with long-term contracts underpinning revenue stability. While the energy sector remains sensitive to commodity swings and geopolitical risk, Energean’s operational momentum has strengthened. The dividend now looks well covered, assuming stable production rates and continued capital discipline. For income investors, the combination of high yield, growing output and improving balance-sheet metrics makes Energean an appealing, albeit sector-sensitive, dividend pick.

Dividend: Victrex

Victrex offers a dividend yield of roughly 9.65%, unusually high for a specialty chemicals business with strong intellectual property and premium polymer products. The elevated yield reflects weak recent trading as industrial and electronics end-markets softened. However, the company remains financially solid with strong margins, a net cash position and leading positions in high-performance materials. If demand stabilises, Victrex’s cash generation and disciplined cost control could support dividend sustainability. For income-oriented investors willing to look through cyclical softness, the current yield and strong balance-sheet make Victrex an attractive recovery-income candidate.

How to invest or trade in UK shares with us

1. Learn more about UK shares
2. Decide whether you want to trade or invest
3. Open an account with us or practise on a demo
4. Search for your chosen share on our web platform or app
5. Make your investment or trade

​When you invest in shares, you buy them outright and become a part-owner of a company, with the goal of building wealth over time.

​Trading takes a shorter-term approach using leverage, allowing you to take larger positions for smaller initial deposits—amplifying both profits and losses. Always ensure you understand the risks before trading.

For example, if you trade with 5:1 leverage, you could manage a £5000 position by placing a £1000 deposit. A 10% market shift could result in 50% profit or loss on your initial margin.

Although negative balance protection stops you from losing more than your initial deposit, market movements are unpredictable, and you could still lose your full deposit.

Top shares to watch summed up

​These five companies represent a mix of high-yield dividend opportunities, structural growth stories and undervalued plays as the UK market transitions toward lower interest rates. Remember, all investments carry risk—always do your own research and consider your financial objectives before taking a position.

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