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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 in the UK finished 2024 almost £10,000 higher than where they began the year, according to Halifax. Despite a slight fall in values in December, the average UK house price now stands at £297,166, up 3.3% compared with a year earlier. The monthly fall of 0.2% was the first seen since March last year.
The bank said price growth had taken off in the summer, as mortgage rates fell and incomes increased. “In many areas across the country, house prices were also buoyed by demand outstripping supply, possibly further amplified by homeowners holding off putting their property on the market – perhaps in anticipation of mortgage rates reducing further,” said Amanda Bryden, head of mortgages at Halifax.
The latest figures from Nationwide, published a few days earlier, suggested house prices increased by 4.7% during 2024.
Rightmove data showed that asking prices set by new sellers were 1.4% by the end of the year.
| Nationwide | Halifax | Rightmove | Land Registry | |
|---|---|---|---|---|
| Average house price | £269,426 | £297,166 | £360,197 | £292,059 |
| Monthly change | +0.7% | -0.2% | -1.7% | +0.2% |
| Annual change | +4.7% | +3.3% | +1.4% | +3.4% |
| Figures for | December 2024 | December 2024 | December 2024 | October 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 £308,781 in England, £222,316 in Wales, and £197,451 in Scotland, according to Land Registry data for October 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 October 2024 were in London, at £520,000, and in the South East, at £382,000. Average property prices were lowest in the North East, at £167,000.
Latest house price changes across the UK
The direction and pace of house price changes differ across the UK. In October, average house prices in England increased by 0.1% compared with the previous month, while in Wales prices rose by 2.0%. In Scotland, prices are 0.2% higher month-on-month, according to the latest Land Registry data.
On an annual basis, average house prices are 3.0% higher in England and 4.0% higher in Wales compared with a year earlier. Property prices in Scotland are 5.5% 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 | £292,059 | £308,781 | £197,451 | £222,316 | £190,553 |
| One year earlier | £282,389 | £299,901 | £187,103 | £213,842 | £177,690 |
| Annual change | +3.4% | +3.0% | +5.5% | +4.0% | +6.2% |
| Monthly change | +0.2% | +0.1% | +0.2% | +2.0% | +2.8% |
Source: HM Land Registry. Figures for England, Scotland and Wales are for October 2024. Figures for Northern Ireland are for Q3 2024.
How property prices are changing where you live
Average house prices in October increased month-on-month in some regions of England, but fell in others. The largest monthly increase is in the South West, where prices are 1.5% higher compared with September. The largest monthly fall is in the North East, dropping by 1.6%.
Average property prices have increased in every region of England compared with a year ago. The largest annual rise is in the North East, at 4.7%.
London house prices
The average house price in London in October 2024 was £519,579. Property values in the capital fell 1.4% month-on-month but are 0.2% higher compared with a year earlier.
However, property prices can vary widely between different London boroughs. In October 2024, the highest house prices in London were in the borough of Kensington and Chelsea, where the average property costs £1.18 million. The lowest house prices in London were in Barking and Dagenham, at an average cost of £338,137.
Are house prices falling?
House prices in the UK increased during 2024, but may have slipped lower in December. The latest Nationwide figures show property prices increased by 0.7% month-on-month in December, following on from growth of 1.2% in November. However, Halifax data suggests property values fell 0.2% in December compared with November. This is the first monthly fall recorded since March 2024, though house prices often dip over the Christmas period.
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
“While the housing market has been supported in recent months by falling mortgage rates, income growth and the announcement of upcoming stamp duty policy changes, mortgage affordability will remain a challenge for many, especially as the Bank Rate is likely to come down more slowly than previously predicted. However, providing employment conditions don’t deteriorate markedly from a more recent softening, buyer demand should hold up relatively well and, taking all this into account, we’re continuing to anticipate modest house price growth this year.”
Robert Gardner, Chief Economist, Nationwide
“Upcoming changes to stamp duty are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax. This will lead to a jump in transactions in the first three months of 2025 (especially in March) and a corresponding period of weakness in the following three to six months, as occurred in the wake of previous stamp duty changes. This will make it more difficult to discern the underlying strength of the market. But, providing the economy continues to recover steadily, as we expect, the underlying pace of housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth. The latter is likely to return to the 2-4% range in 2025 once stamp duty related volatility subsides.”
Richard Donnell, Executive Director, Zoopla
“We expect UK house prices to increase by 2.5% over 2025, with an ongoing North-South divide resulting in lower price inflation across southern England and faster elsewhere. This is down to the relative affordability of housing across the country and how much house prices have risen relative to household incomes. Buyers have become more price-sensitive in recent weeks in the wake of the Autumn Budget and amid growing uncertainty over the outlook for mortgage rates, which have drifted higher. Buyers are currently paying 3.6% below the asking price, compared to 3.2% over the summer, however it remains a buyer’s market. We expect a greater choice of homes for sale and price-sensitive buyers to continue to keep UK price inflation in check over 2025.”
Tim Bannister, Director of Property Science at Rightmove
“The property market has shown remarkable resilience this year, with sales activity remaining strong, which gives us optimism for a promising 2025. Naturally, December brings a seasonal slowdown in new listings as many shift their focus to the festivities. However, we expect the traditional post-Christmas surge in activity to kickstart the new year, with Boxing Day marking the beginning of a busy period. Getting a valuation now or early January will help put prospective sellers in a strong position to take advantage of buyers who are actively seeking correctly priced properties. While the market remains robust, we’re mindful of challenges ahead, including the anticipated impact of stamp duty reverting to previous levels in April.”
» MORE: Stamp duty calculator
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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 have dropped since the middle of 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. There is concern that recent mortgage rate cuts may stall heading into 2025. Forecasts also 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 £292,059 in October 2024, up from £282,389 a year earlier, according to the latest HM Land Registry UK House Price Index. This means UK property prices are 3.4% higher than a year ago, and 0.2% higher 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 a “gentle up-trend” across the housing market in November. Surveyors said there had been a modest rise in enquiries from new buyers, but noted a levelling off in the number of completed sales. A further rise in house prices is also expected in 2025.
It is taking an average of 65 days for home sellers to find a buyer, slightly shorter than the 66 days reported a year earlier, according to the latest Rightmove data for November 2024.
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 two months in a row, but remain slightly higher than a year ago. According to the latest Land Registry data, property values in London fell by 1.4% between September and October, but are 0.2% higher compared with a year earlier. As a result, the average house price in London stands at £519,579, around £1,000 higher than in October 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.
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