Average UK home costs elevated by 3.7%, to £269,000, within the 12 months to finish of June 2025, with this annual progress fee 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 home worth inflation.
On a country-by-country foundation, the ONS information additionally reveals that common home costs 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 consumers 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 consumers and retains costs sticky.
Lambert identified that coverage noise was including additional uncertainty. Reports this week urged 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 may reverse the adjustments. That would danger even tighter provide and, paradoxically, may push costs larger by intensifying competitors, compounding issues for first-time consumers.”
On the Market president Jason Tebb mentioned the market continued to reveal resilience, assisted by 5 rate of interest reductions previously 12 months.
“These cuts, with the suggestion of extra to return, 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 stage 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 business director for retail mortgages Steve Griffiths mentioned property costs had continued on a modest however upward trajectory in accordance with the newest HPI information.
“Whilst that is broadly consistent with seasonal tendencies, rates of interest falling to 4.25% in May have helped increase house 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 chopping their charges to observe go well with.”
Former Rics residential chairman and property agent Jeremy Leaf mentioned there had one other set of housing market information which confirmed purchaser and vendor resilience in addition to a willpower to maintain transactions alive and negotiate exhausting on worth.
“That confidence has been supported by rising wages and easing affordability pressures, though not an excessive amount of reliance needs to be positioned on these numbers as they’re a bit of dated however are probably the most complete of all as embody mortgaged and money transactions.”
However, he added that the looming, nearly inevitable tax rises on the horizon and rising considerations about higher-than-expected inflation have been more likely to restrict the depth and frequency of future rate of interest cuts, which might have given an additional increase to exercise.
