Average UK house prices increased by 3.9%, to £269,000, in the 12 months to May 2025 (provisional estimate); according to the latest figures from the Office for National Statistic.
This annual growth rate is up from 3.6% in the 12 months to April 2025.
The average house price for England was £290,000 in May 2025, up 3.4% (£9,000) from a year earlier. This annual rise was higher than in the 12 months to April 2025 (3.1%).
The average house price for Wales was £210,000 in May 2025, up 5.1% (£11,000) from a year earlier. This annual rise was higher than in the 12 months to April 2025 (4.5%).
The average house price for Scotland was £192,000 in May 2025, up 6.4% (£12,000) from a year earlier. This annual rise was higher than in the 12 months to April 2025 (6.2%).
And the average house price for Northern Ireland was £185,000 in Quarter 1 (Jan to Mar) 2025, up 9.5% (£16,000) from Quarter 1 2024.
Commenting on the ONS figures Finova business development director Hamza Behzad said: “As the market steers into the second half of 2025, the wider UK housing market has once again flexed its muscles, remaining strong despite an everchanging economic landscape.
“The post-tax break slowdown has not bitten into demand, and buyer activity is healthy. The much-anticipated Mortgage Guarantee scheme will further boost activity, empowering first-time buyers to make that crucial first step onto the ladder.
He added that across the market, we were seeing an appetite for a slight easing in regulations. “If managed appropriately, a controlled increase in risk thresholds could make it much easier for first-time buyers to afford a mortgage.”
Housing market stimulation
Propertymark chief executive Nathan Emerson commented:“In some respects, rising house prices shows as an indicator of growth in the general housing market and stability in some people’s finances as some banks are now cutting their mortgage rates to further stimulate the housing market.
“However, there is still more work to do to boost Britain’s housing market and make homeownership a realistic aspiration for those looking to step onto the property ladder for the first time.”
Foxtons chief sales officer Jean Jameson pointed out that June was a steadier month in sales as the market continued to adjust after a strong Q1. “Consumer confidence is still on the weaker side, and with interest rates not coming down as quickly as many had hoped, activity hasn’t picked up as quickly as previously expected. Despite this, new instructions have continued to come to market, giving buyers more choice as we move into the summer.”
OnTheMarket president Jason Tebb said the market continued to demonstrate remarkable resilience, assisted by four interest rate reductions since last August.
“These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy. The unexpected increase in inflation to 3.6 per cent in June may persuade the Bank to pause with regard to further reductions, although much depends on other economic data such as the jobs market.”
ModaMortgages and CHL Mortgages for Intermediaries sales director Darrell Walker said: “Another month of annual house price growth — and a return to monthly growth — underlines the resilience in the market, but it comes with a caveat.
“The figures show that while prices are edging upwards, momentum has slowed notably since March’s two-year high. It’s a reminder that although market sentiment remains broadly positive, it is still somewhat fragile.”
