Many or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.
Table of Contents
- What is happening to house prices in the UK?
- Average UK property prices
- Latest house price changes across the UK
- How property prices are changing where you live
- London house prices
- Are house prices falling?
- UK house price forecasts 2025 and beyond
- Expert UK housing market predictions
- Is now a good time to buy a house?
- UK House Price FAQs
What is happening to house prices in the UK?
House prices rose by 0.7% in January, taking the average property price in the UK to a new high of £299,138, according to Halifax. The lender’s latest data showed values had bounced back from the drop of 0.2% seen in December.
However, year-on-year growth fell back to 3.0%, the weakest annual rate since July 2023. The bank said affordability among prospective buyers is “still a challenge”. Fellow lender Nationwide suggested similar last week when also reporting annual growth had slowed.
The latest Rightmove data shows that asking prices set by new sellers increased by 1.7% in January. It is the biggest rise seen at the start of a year since 2020, and means average asking prices now stand at £366,189.
The latest official Land Registry data, which lags behind other indices, shows UK house prices were 3.3% higher year-on-year in November, the strongest annual growth recorded since February 2023.
» MORE: Compare mortgage rates
| Nationwide | Halifax | Rightmove | Land Registry | |
|---|---|---|---|---|
| Average house price | £268,213 | £299,138 | £366,189 | £289,707 |
| Monthly change | +0.1% | +0.7% | +1.7% | -0.4% |
| Annual change | +4.1% | +3.0% | +1.8% | +3.3% |
| Figures for | January 2025 | January 2025 | January 2025 | November 2024 |
| Methodology | Based on Nationwide mortgage transactions | Based on Lloyds Banking Group mortgage transactions | Based on asking prices of newly marketed properties | Based on official completed house sales data |
Average UK property prices
The average house price is £306,494 in England, £219,446 in Wales, and £195,036 in Scotland, according to Land Registry data for November 2024. In the third quarter of 2024, the average property price in Northern Ireland was £190,553.
On a regional basis, the highest average house prices in England in November 2024 were in London, at £511,000, and in the South East, at £378,000. Average property prices were lowest in the North East, at £169,000.
Latest house price changes across the UK
The direction and pace of house price changes differ across the UK. In November, average house prices in England fell by 0.4% compared with the previous month, while in Wales prices dropped by 0.7%. In Scotland, prices fell 0.8% month-on-month, according to the latest Land Registry data.
On an annual basis, average house prices are 3.0% higher in England and 3.0% higher in Wales compared with a year earlier. Property prices in Scotland are 4.7% higher year-on-year. In Northern Ireland, monthly prices were 2.8% higher and annual prices were 6.2% higher in Q3 (July-September) 2024.
| UK | England | Scotland | Wales | Northern Ireland | |
|---|---|---|---|---|---|
| Average house price | £289,707 | £306,494 | £195,036 | £219,446 | £190,553 |
| One year earlier | £280,476 | £297,655 | £186,202 | £213,104 | £177,690 |
| Annual change | +3.3% | +3.0% | +4.7% | +3.0% | +6.2% |
| Monthly change | -0.4% | -0.4% | -0.8% | -0.7% | +2.8% |
Source: HM Land Registry. Figures for England, Scotland and Wales are for November 2024. Figures for Northern Ireland are for Q3 2024.
How property prices are changing where you live
Average house prices in November increased month-on-month in some regions of England, but fell in others. The largest monthly increase is in the North East, where prices are 1.1% higher compared with October. The largest monthly fall is in London, dropping by 1.0%.
Average property prices have increased in every region of England except London compared with a year ago. The largest annual rise is in the North East, at 5.9%. Property prices are 0.1% lower in London.
London house prices
The average house price in London in November 2024 was £511,279. Property values in the capital dropped 1.0% month-on-month and are 0.1% lower compared with a year earlier.
However, property prices can vary widely between different London boroughs. In November 2024, the highest house prices in London were in the borough of Kensington and Chelsea, where the average property costs £1.07 million. The lowest house prices in London were in Barking and Dagenham, at an average cost of £343,528.
Are house prices falling?
House prices in the UK are rising, though the pace of growth slowed in January 2025. The latest Halifax data shows annual growth in property values eased to 3.0%, down from 3.4% in December.
It’s important to note that property prices, and the direction and pace of price movements, change all the time. However, there are signs that the underlying trend of steadily rising property prices that has generally been the norm in recent years may have resumed.
» MORE: Where is the cheapest place to rent in the UK?
UK house price forecasts 2025 and beyond
It is generally predicted that property prices will continue to rise in 2025, and in the years after.
| 2025 | 2026 | 2027 | |
|---|---|---|---|
| Knight Frank | +2.5% | +3.0% | +3.5% |
| Office for Budget Responsibility | +1.1% | +1.8% | +2.7% |
| Savills | +4.0% | +5.5% | +5.0% |
| Capital Economics | +5.0% | +4.0% | – |
Expert UK housing market predictions
Amanda Bryden, Head of Mortgages, Halifax
“There’s strong demand for new mortgages and growth in lending. With a stamp duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March. The Bank of England has made its first base rate cut of the year, and there are probably more to come. Household earnings are expected to continue outpacing inflation – albeit that gap may narrow – easing some of the financial pressure still being felt from the cost-of-living squeeze. As things stand, mortgage rates are likely to hover between 4% and 5% in 2025, influenced by both global financial markets and domestic monetary policy. Over the past year, buyers have been getting used to this new normal, understanding that rates are unlikely to return to the historical lows of 1%. But the fundamental issue in the housing market remains the lack of supply. This long-term trend, coupled with a gradual improvement in affordability, should support further modest house price growth this year.”
Robert Gardner, Chief Economist, Nationwide
“The housing market continues to show resilience despite ongoing affordability pressures. While there has been a modest improvement over the last year, affordability remains stretched by historic standards. A prospective buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 36% of their take-home pay – well above the long-run average of 30%. Furthermore, house prices remain high relative to average earnings, with the first-time buyer house price to earnings ratio standing at 5.0 at the end of 2024, still well above the long run average of 3.9. Consequently, the deposit hurdle remains high. This is a challenge that has been made worse by the record increase in rents in recent years, which, together with the cost-of-living crisis more generally, has hampered the ability of many in the private rented sector to save.”
Richard Donnell, Executive Director, Zoopla
“2025 has started off better than both 2024 and 2023. This bodes well for market activity over the rest of the year, supported by evidence of more people looking to move. While some are rushing to beat the new stamp duty levels by March, we don’t see this having a major impact on activity overall. Three in five first-time buyers will still pay no stamp duty from April and the extra costs on homeowner movers remains manageable. A healthy stock of homes for sale will keep price rises in check and we are forecasting that average UK house prices will rise by 2.5% in 2025, with 5% more sales taking place than last year, a predicted total of 1.15 million. Rising incomes and base rate cuts are set to continue improving housing affordability over 2025.”
Colleen Babcock, Property Expert at Rightmove
“New sellers have started the year with a bang, with a record number coming to market not only on Boxing Day itself, but across the start of the year to date. We’ve also seen a strong start to the year in new seller asking prices, though given the higher-than-anticipated seller competition, we would expect this to slow down over the next few months. Many buyers are still affordability-stretched, with high mortgage rates restricting borrowing power and limiting what they can afford to pay. Meanwhile, first-time buyers have seen support schemes reduce and some also face higher stamp duty fees from April, all while contending with record rents and trying to save up for a deposit. Rightmove’s early-year snapshot shows a promising start to 2025. However, the market needs a boost for that momentum to be sustained, in the form of early and ongoing Bank Rate cuts, which should hopefully help to reduce mortgage rates. Some further support for first-time buyers would also be welcomed, particularly in more expensive areas of the country.”
» MORE: Stamp duty calculator
Compare Mortgage Deals
Use our mortgage comparison tool to compare mortgage deals from across the market
Is now a good time to buy a house?
Financially, the best time to buy a house is when mortgage rates and house prices are both low. In reality, the chances of this happening, and being able to time a purchase right, are slim. So instead, it’s important to find a property and mortgage you can afford without overstretching.
While mortgage rates fell last year, they remain significantly higher than through most of the 2010s and early 2020s. Simply put, mortgages aren’t as affordable as a few years ago.
If your funds are tight, waiting for rates to come down may be your only option. The Bank of England lowered the base rate of interest to 4.5% on 6 February, but there is still some uncertainty as to what will happen to mortgage rates next. Forecasts suggest that house prices will end the year higher than where they began.
Ultimately, it’s impossible to predict with any certainty what will happen to house prices and the cost of mortgages.
Because of this, whether now is a good time to buy a property or not largely depends on your circumstances, priorities and outlook. Getting mortgage advice can help you figure out the numbers. But the ultimate decision to buy now or wait will rest with you.
» MORE: Check current mortgage rates
UK House Price FAQs
The average house price in the UK was £289,707 in November 2024, up from £280,476 a year earlier, according to the latest HM Land Registry UK House Price Index. This means UK property prices are 3.3% higher than a year ago, but 0.4% lower month-on-month.
Most house price forecasts predict property prices will rise in 2025. For example, Capital Economics forecasts a 5% increase in property values, while Savills anticipates growth of 4%.
The Royal Institution of Chartered Surveyors (RICS) reported that sales volumes improved slightly in December. The number of new properties coming to the market also increased, but interest from new buyers levelled out. Surveyors also predict house prices will rise in 2025.
The latest forecasts from Savills suggest UK house prices could rise by around 23% over the next five years, adding £84,000 to the value of a property.
It took on average 72 days for home sellers to find a buyer in December, according to the latest Rightmove data. This is a week longer than in November, but not unexpected, given the seasonal property market slowdown generally seen over the Christmas period.
Home buyers were paying on average 3.6% below the asking price at the end of 2024, according to Zoopla. This compared with an average discount of 3.2% during the summer. The property website said the Autumn Budget and uncertainty over the future direction of mortgage rates had made buyers more price sensitive as the year drew to a close.
House prices in London have fallen for three months in a row, and are slightly lower than a year ago. According to the latest Land Registry data, property values in London dropped 1.0% between October and November, and are 0.1% lower compared with a year earlier. The average house price in London stands at £511,279, a few hundred pounds lower compared to November 2023.
There are several house price reports and indices published each month that provide insight into house price trends and the housing market in the UK. Four of the most respected indices are published by HM Land Registry, Rightmove, Halifax and Nationwide, each showing how property prices are changing from month to month and on an annual basis. However, as each index tends to be based on different data and may be calculated in different ways, they often show different average house prices and changes when compared with one another.
Land Registry sold house price data is usually considered one of the most accurate housing market barometers because it is based on completed property sales, and includes cash purchases, as well as properties bought using a mortgage. However, because it is collated in this way, the data tends to be around two months behind other indices.
About the Author
Dive even deeper
What Credit Score Do You Need for a Mortgage?
by Sam Bromley
Should I Get a Fixed or Variable Mortgage?
