Average UK house prices elevated by 3.9%, to £269,000, within the 12 months to May 2025 (provisional estimate); in keeping with the newest figures from the Office for National Statistic.
This annual progress charge is up from 3.6% within the 12 months to April 2025.
The common house value for England was £290,000 in May 2025, up 3.4% (£9,000) from a yr earlier. This annual rise was greater than within the 12 months to April 2025 (3.1%).
The common house value for Wales was £210,000 in May 2025, up 5.1% (£11,000) from a yr earlier. This annual rise was greater than within the 12 months to April 2025 (4.5%).
The common house value for Scotland was £192,000 in May 2025, up 6.4% (£12,000) from a yr earlier. This annual rise was greater than within the 12 months to April 2025 (6.2%).
And the common house value 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 enterprise growth director Hamza Behzad stated: “As the market steers into the second half of 2025, the broader UK housing market has as soon as once more flexed its muscle groups, remaining sturdy despite an everchanging financial panorama.
“The post-tax break slowdown has not bitten into demand, and purchaser exercise is wholesome. The much-anticipated Mortgage Guarantee scheme will additional increase exercise, empowering first-time consumers to make that essential first step onto the ladder.
He added that throughout the market, we have been seeing an urge for food for a slight easing in rules. “If managed appropriately, a managed enhance in threat thresholds might make it a lot simpler for first-time consumers to afford a mortgage.”
Housing market stimulation
Propertymark chief govt Nathan Emerson commented:“In some respects, rising house prices exhibits as an indicator of progress within the common housing market and stability in some individuals’s funds as some banks are actually reducing their mortgage charges to additional stimulate the housing market.
“However, there may be nonetheless extra work to do to spice up Britain’s housing market and make homeownership a sensible aspiration for these seeking to step onto the property ladder for the primary time.”
Foxtons chief gross sales officer Jean Jameson identified that June was a steadier month in gross sales because the market continued to regulate after a powerful Q1. “Consumer confidence remains to be on the weaker facet, and with rates of interest not coming down as shortly as many had hoped, exercise hasn’t picked up as shortly as beforehand anticipated. Despite this, new directions have continued to return to market, giving consumers extra selection as we transfer into the summer season.”
OnTheMarket president Jason Tebb stated the market continued to exhibit exceptional resilience, assisted by 4 rate of interest reductions since final August.
“These cuts, with the suggestion of extra to return, have boosted purchaser and vendor confidence, rising exercise within the market and benefiting the broader financial system. The sudden enhance in inflation to three.6 per cent in June could persuade the Bank to pause with regard to additional reductions, though a lot depends upon different financial information corresponding to the roles market.”
ModaMortgages and CHL Mortgages for Intermediaries gross sales director Darrell Walker stated: “Another month of annual house value progress — and a return to month-to-month progress — underlines the resilience within the market, but it surely comes with a caveat.
“The figures present that whereas prices are edging upwards, momentum has slowed notably since March’s two-year excessive. It’s a reminder that though market sentiment stays broadly constructive, it’s nonetheless considerably fragile.”
