Average UK house prices elevated by 3.7%, to £269,000, within the 12 months to finish of June 2025, with this annual development charge up from 2.7%, within the 12 months to May 2025.
These figures come from the newest Office for National Statistics (ONS) UK House Price Index which measures house value inflation.
On a country-by-country foundation, the ONS knowledge additionally reveals that common house prices elevated to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, within the 12 months to June 2025.
Commenting on the newest figures, Quilter monetary planner Thomas Lambert mentioned: “The headline determine (£269,000) sits in opposition to a market nonetheless combating affordability. Mortgage charges have eased from the highs, however typical fixes stay across the 4% mark, which retains month-to-month funds far above the degrees patrons grew used to within the 2010s.
“This morning’s inflation print ticked up once more, which makes the trail to decrease rates of interest longer and reinforces the affordability squeeze. On prime of that, housing provide stays skinny which retains selection restricted for patrons and retains prices sticky.
Lambert identified that coverage noise was including additional uncertainty. Reports this week advised the Treasury was contemplating taxing positive factors on main residences above a excessive threshold or introducing new levies on costly properties.
“If these rumours do materialise on the Autumn Budget brings, transactions may seize up by the winter as sellers think about sitting on their palms hoping that one other authorities would possibly reverse the adjustments. That would threat even tighter provide and, paradoxically, may push prices larger by intensifying competitors, compounding issues for first-time patrons.”
On the Market president Jason Tebb mentioned the market continued to display resilience, assisted by 5 rate of interest reductions prior to now 12 months.
“These cuts, with the suggestion of extra to come back, have boosted purchaser and vendor confidence, rising exercise out there and benefiting the broader financial system. However, with inflation rising once more to three.8% in July, its highest degree in a 12 months and a half, this will likely persuade the Bank to press the pause button for now with regard to additional reductions.”
Shawbrook industrial director for retail mortgages Steve Griffiths mentioned property prices had continued on a modest however upward trajectory in accordance with the newest HPI knowledge.
“Whilst that is broadly consistent with seasonal tendencies, rates of interest falling to 4.25% in May have helped increase residence purchaser confidence out there and offset a pointy decline in exercise put up stamp responsibility deadline coming into impact.
He added: “Looking in direction of H2, there are constructive indicators that the market will proceed to be resilient, particularly within the face of wider financial considerations. The rate of interest is now on the lowest level it’s been in two years, and mortgage lenders are reducing their charges to comply with swimsuit.”
Former Rics residential chairman and property agent Jeremy Leaf mentioned there had one other set of housing market knowledge which confirmed purchaser and vendor resilience in addition to a dedication to maintain transactions alive and negotiate arduous on value.
“That confidence has been supported by rising wages and easing affordability pressures, though not an excessive amount of reliance ought to be positioned on these numbers as they’re just a little dated however are probably the most complete of all as embody mortgaged and money transactions.”
However, he added that the looming, virtually inevitable tax rises on the horizon and rising considerations about higher-than-expected inflation had been prone to restrict the depth and frequency of future rate of interest cuts, which might have given an additional increase to exercise.
