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Are property prices going up in the United Kingdom?
Yes, property prices in the UK are rising steadily as of June 2025, with annual growth rates between 1.6% and 3.7% depending on the data source.
If you want to go deeper, you can check our pack of documents related to the real estate market in the United Kingdom, based on reliable facts and data, not opinions or rumors.
UK property prices reached £268,250-£294,818 on average by April 2025, with steady annual growth of 1.6-3.7% and five-year cumulative growth of 25.1%.
The North West, North East, and Scotland are experiencing the fastest price growth at 5% annually, while semi-detached and detached houses are outperforming flats in terms of appreciation.
| Metric | Current Value | Trend |
|---|---|---|
| Average UK House Price | £268,250-£294,818 | ↑ 1.6-3.7% annually |
| Fastest Growing Regions | Scotland, North West, North East | ↑ 5% projected 2025 |
| Best Performing Property Type | Semi-detached houses | ↑ 4.8% year-on-year |
| 5-Year Forecast (2025-2029) | 20-23% cumulative growth | Steady appreciation |
| Bank of England Base Rate | 4.25% | ↓ Multiple cuts since 2024 |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
What are the current average property prices across the UK in June 2025?
Property prices in the UK currently average between £268,250 and £294,818 as of June 2025.
The variation in these figures depends on which property index you consult. Zoopla reports the lower figure of £268,250, while Halifax's data shows £294,818 for January 2025. These differences arise from varying methodologies and the types of properties included in each index.
Meanwhile, asking prices for properties listed in May 2025 hit a record £379,517, though this figure includes higher-value listings and doesn't reflect actual completed sales. The London market significantly skews the national average, with properties there averaging £534,400.
For comparison, the average UK property price has increased by over 50% since 2015, and by 74% over the past 20 years. This represents an addition of over £150,000 to the typical property value during that period.
It's something we develop in our United Kingdom property pack.
How much have UK property prices increased over the past 12 months?
UK property prices have risen between 1.6% and 3.7% over the past 12 months as of June 2025.
According to Zoopla, the annual increase stands at 1.6%, representing more modest growth compared to the pandemic boom years. Halifax reports a stronger 3.7% annual rise, reflecting their different data collection methods and property samples.
| Property Type | Annual Price Growth | 5-Year Growth |
|---|---|---|
| Semi-detached houses | 4.8% | 27.5% |
| Detached houses | 4.5% | 29.8% |
| Terraced houses | 3.2% | 26.1% |
| Flats/Maisonettes | 0.2% | 16.7% |
| All property types | 1.6-3.7% | 25.1% |
The growth represents a stabilization after the rapid increases seen during 2021-2022, when annual growth rates exceeded 10% in some months.
Which UK regions are experiencing the fastest property price growth in 2025?
Scotland and northern English regions are leading UK property price growth in 2025, with projected increases of 5% annually.
The North West, North East, and Yorkshire and the Humber are experiencing the strongest price momentum as we reach mid-2025. These regions benefit from better affordability compared to southern England, attracting both first-time buyers and investors seeking better yields.
Scotland's property market continues to outperform, driven by strong demand in Edinburgh and Glasgow, plus increased interest from US investors attracted by favorable exchange rates. The North West, particularly around Manchester and Liverpool, benefits from significant infrastructure investment and job creation.
In contrast, the South West and East of England are seeing the slowest growth at around 2.5% annually. London's market shows signs of recovery after several years of underperformance, with some forecasts suggesting it could lead growth later in 2025, though most analysts remain cautious about this prediction.
The regional disparities reflect a broader rebalancing of the UK property market, with traditionally cheaper northern areas catching up to expensive southern regions.
What property types are seeing the biggest price increases in 2025?
Semi-detached and detached houses are experiencing the strongest price growth in the UK property market as of June 2025.
Semi-detached properties lead with a 4.8% year-on-year increase, followed closely by detached houses at 4.5%. These family-friendly property types benefit from continued demand for space following pandemic-era lifestyle changes, plus their relative scarcity in many urban areas.
Terraced houses also show robust growth, particularly in northern regions where they represent affordable family housing options. The strong performance of houses versus flats reflects buyer preferences for private outdoor space and home offices.
Flats and maisonettes lag significantly with annual growth as low as 0.2% in some indices. This weakness particularly affects city-center apartments, where oversupply in some areas and concerns about service charges and building safety regulations dampen demand.
The divergence between property types has widened over the past five years, with detached houses gaining nearly 30% compared to just 16.7% for flats.
What do property price forecasts predict for the UK market through 2026?
UK property prices are forecast to rise by 3-5% in 2026, continuing the steady growth pattern established in 2025.
Major forecasting bodies including Savills, Knight Frank, and JLL predict cumulative growth of 20-23% over the five-year period from 2025 to 2029. This translates to average annual increases of around 4% nationally, though regional variations will persist.
- Northern regions and Scotland expected to see 5-6% annual growth through 2026
- London and the South East projected at 2.5-3.5% annually
- Midlands markets forecast for 4-4.5% yearly increases
- Wales anticipated to grow by 3.5-4% per year
- Northern Ireland expected to see 4.5-5% annual rises
These forecasts assume continued economic stability, gradual interest rate reductions by the Bank of England, and no major shocks to the housing market. Analysts particularly highlight the North West's potential for 29% cumulative growth by 2029.
It's something we develop in our United Kingdom property pack.
How do current UK property prices compare to other Western European markets?
The UK maintains its position as one of the most expensive property markets in Western Europe as of June 2025.
London's average price of £534,400 far exceeds most European capitals, with only Monaco and parts of Switzerland commanding higher prices. The UK's national average of £268,250-£294,818 also surpasses many Western European countries, reflecting chronic undersupply and sustained demand.
When compared to major European cities, London property costs approximately 40% more than Paris, 60% more than Berlin, and nearly double that of Madrid or Rome. Even UK regional cities like Manchester and Edinburgh command higher prices than many continental European capitals.
The disparity reflects the UK's particular housing challenges: limited land availability, complex planning regulations, and historically low construction rates compared to population growth. Foreign investment, particularly from Asia and increasingly the US, also supports UK prices at levels above European norms.
However, UK property price growth has lagged some European markets recently, with cities like Lisbon, Dublin, and Amsterdam seeing faster appreciation rates.
What are the long-term property price projections for the next 10-20 years?
UK property prices could rise by 50-70% over the next 20 years if current trends continue.
Ten-year projections suggest property values will increase by approximately 40% by 2035, based on historical growth patterns and current market fundamentals. This assumes average annual growth of 3-4%, lower than the 5-6% averages seen over the past two decades but reflecting more mature market conditions.
| Time Period | Projected Cumulative Growth | Average Annual Growth |
|---|---|---|
| 5 years (2025-2029) | 20-23% | 4-4.5% |
| 10 years (2025-2035) | 40-45% | 3.5-4% |
| 20 years (2025-2045) | 50-70% | 2.5-3.5% |
These long-term forecasts face significant uncertainty from factors including demographic changes, climate policy impacts on property, technological disruption in construction, and potential shifts in working patterns. Any major economic shocks or policy changes could substantially alter these projections.
How have Bank of England interest rate changes affected property prices in 2024-2025?
Bank of England rate cuts to 4.25% by June 2025 have supported property price growth by improving mortgage affordability.
The central bank has implemented multiple rate reductions since late 2024, bringing the base rate down from its peak of 5.25%. This has translated into lower mortgage rates, with typical two-year fixed deals now available around 4.5-5%, compared to over 6% at the 2023 peak.
Lower borrowing costs have particularly benefited first-time buyers and those remortgaging, expanding the pool of potential purchasers. Mortgage approvals increased by 15% in the first quarter of 2025 compared to the same period in 2024, indicating improved market activity.
However, the impact remains tempered by high property values and stricter affordability testing by lenders. Many buyers still face challenges meeting deposit requirements and passing stress tests, limiting the full stimulative effect of rate cuts.
Market analysts expect further modest rate reductions through 2025, potentially bringing the base rate to 3.75% by year-end, which should continue supporting price growth.
What impact has political uncertainty had on UK property prices following the 2025 election?
Political uncertainty from the 2025 general election has had minimal impact on UK property prices, with markets largely anticipating the outcome.
Most buyers and sellers had already factored in a potential change of government, minimizing immediate market disruption. Property transactions continued at normal seasonal levels through the election period, with prices maintaining their steady upward trajectory.
The new government's housing strategy, expected later in 2025, focuses on increasing social housing provision and planning reform. While these policies could affect long-term supply dynamics, they haven't yet influenced current pricing trends. Some high-value property markets in London showed brief hesitation around potential tax changes, but activity quickly resumed.
Estate agents report that some buyers adopted a wait-and-see approach in early 2025, but this caution dissipated once the election outcome became clear. No sharp downturn materialized, and market confidence remains relatively stable.
Historical patterns suggest UK property markets typically show resilience through political transitions, with economic fundamentals ultimately driving prices more than political factors.
What is the current level of buyer demand in the UK property market as of mid-2025?
Buyer demand remains strong but more balanced than recent years, creating a healthier market environment as of June 2025.
Estate agents report steady buyer interest, particularly in affordable regions and for family homes. The market has shifted from the frenzied conditions of 2021-2022 to a more sustainable pace, with properties typically receiving 2-3 offers rather than 10+ as seen during the pandemic boom.
Demand varies significantly by region and price point:
- Strong demand continues for properties under £300,000, especially in northern regions
- Family houses with gardens attract multiple buyers in most markets
- City-center flats face weaker demand, particularly in oversupplied areas
- Properties priced above £750,000 experience longer selling times
- New-build homes with energy efficiency features see increasing interest
The market currently favors buyers more than in previous years, with increased choice and less competition for each listing. Average time to sell has extended to 32 days nationally, compared to just 16 days at the 2021 peak.
How significant is foreign investment in UK property during 2025?
Foreign investment remains a significant force in the UK property market during 2025, with notable increases from US buyers.
International purchasers account for approximately 13% of London property transactions and 5% nationally. Chinese and Hong Kong investors continue as major players, though US buyer activity has surged by 40% year-on-year, driven by favorable exchange rates and UK market stability.
US investors particularly target Scotland and northern England, attracted by lower entry prices and strong rental yields. They're increasingly purchasing smaller properties suitable for buy-to-let investments rather than luxury homes, marking a shift in foreign investment patterns.
Asian investment remains concentrated in London and major university cities, with continued interest in new-build developments. Middle Eastern buyers maintain their presence in the prime London market, though at lower volumes than the 2010s peak.
Foreign investment supports price levels particularly in London and Edinburgh, contributing an estimated 2-3% to annual price growth in these markets. However, additional stamp duty charges for overseas buyers (2% surcharge) have moderated some demand.
It's something we develop in our United Kingdom property pack.
Where are the best UK property investment opportunities in 2025?
The best UK property investment opportunities in 2025 are concentrated in northern cities and Scotland, offering superior yields and growth potential.
Manchester leads investment rankings with projected 6% annual capital growth and rental yields exceeding 5.5%. The city benefits from the ongoing Northern Powerhouse initiative, major transport improvements, and a thriving tech sector attracting young professionals.
| Location | Projected Annual Growth | Average Rental Yield |
|---|---|---|
| Manchester | 6% | 5.5% |
| Liverpool | 5.5% | 6% |
| Glasgow | 5% | 5.8% |
| Birmingham | 4.5% | 5.2% |
| Leeds | 5% | 5.3% |
| Edinburgh | 4% | 4.8% |
These cities offer the optimal combination of affordability, rental demand from students and young professionals, and infrastructure investment that should drive long-term appreciation.
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
UK property prices are definitively going up as we reach mid-2025, with annual growth rates between 1.6% and 3.7% across different indices. The market shows steady appreciation rather than rapid gains, creating more sustainable conditions for long-term investment.
Northern regions and Scotland lead the growth trajectory with 5% annual increases, while traditional property types like semi-detached and detached houses outperform flats. With Bank of England rate cuts improving affordability and strong underlying demand, the UK property market appears set for continued price growth through 2026 and beyond. The answer is clear: Yes, UK property prices are going up.
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Sources
- Zoopla House Price Index
- Halifax House Price Report
- Rightmove House Price Index
- Savills UK Housing Market Forecast
- Parkview Capital UK Housing Analysis
- Nationwide House Price Index
- Statista UK House Price Statistics
- Knight Frank UK Housing Market Forecast
- Bank of England Interest Rates
- Buy Association Group Foreign Investment Report