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 in the UK dipped slightly lower in February, according to Halifax. A 0.1% drop in values over the month leaves the average UK house price at £298,602. The lender said prices “remained stable”.
Rightmove recently revealed that asking prices set by new sellers increased by 0.5% in February, compared with 1.7% in January. The property portal said the rise was “subdued” for this time of year, adding that higher stamp duty coming at the end of March and increased competition was causing sellers to lower their price expectations.
The latest official Land Registry data, which lags behind other indices, shows UK house prices increased by 4.6% in 2024 to £268,087.
» MORE: Compare mortgage rates
| Nationwide | Halifax | Rightmove | Land Registry | |
|---|---|---|---|---|
| Average house price | £270,493 | £298,602 | £367,994 | £268,087 |
| Monthly change | +0.4% | -0.1% | +0.5% | -0.1% |
| Annual change | +3.9% | +2.9% | +1.4% | +4.6% |
| Figures for | February 2025 | February 2025 | February 2025 | December 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 £290,564 in England, £208,197 in Wales, and £188,807 in Scotland, according to Land Registry data for December 2024. In the fourth quarter of 2024, the average property price in Northern Ireland was £183,259.
On a regional basis, the highest average house prices in England in December 2024 were in London, at £549,000, and in the South East, at £384,000. Average property prices were lowest in the North East, at £161,000.
Latest house price changes across the UK
The direction and pace of house price changes differ across the UK. In December, average house prices in England were unchanged compared with the previous month. In Wales prices fell by 0.5% month-on-month, while in Scotland, prices dropped by 0.5%, according to Land Registry data.
Across 2024 as a whole, average house prices increased by 4.3% in England, by 3.0% in Wales, and by 6.9% in Scotland. In Northern Ireland, monthly prices were 1.5% higher and annual prices were 9.0% higher in Q4 (October-December) 2024.
| UK | England | Scotland | Wales | Northern Ireland | |
|---|---|---|---|---|---|
| Average house price | £268,087 | £290,564 | £188,087 | £208,197 | £183,259 |
| One year earlier | £256,177 | £278,664 | £176,538 | £202,077 | £168,157 |
| Annual change | +4.6% | +4.3% | +6.9% | +3.0% | +9.0% |
| Monthly change | -0.1% | 0.0% | -0.5% | -0.5% | +1.5% |
Source: HM Land Registry. Figures for England, Scotland and Wales are for December 2024. Figures for Northern Ireland are for Q4 2024.
How property prices are changing where you live
Average house prices in December increased month-on-month in some regions of England, but fell in others. The East of England and the South East recorded the largest monthly rise of 0.6% compared with November. Yorkshire and the Humber saw the largest monthly fall of 0.8%.
Average property prices increased in every region of England except London in 2024. Annual growth was strongest in the North East, at 6.7%. Property prices in London were unchanged across the year.
London house prices
The average house price in London in December 2024 was £548,939. Property values in the capital dropped 0.3% month-on-month but ended 2024 broadly unchanged compared to where they began.
However, property prices can vary widely between different London boroughs. In December 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 £355,594.
Are house prices falling?
The latest data from Halifax suggests UK house prices slipped lower in February, dropping 0.1% month-on-month. The lender said the pace of house price growth had slowed in most areas of the UK.
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 | +3.5% | +4.5% | – |
Expert UK housing market predictions
Amanda Bryden, Head of Mortgages, Halifax
“February’s figures highlight the delicate balance within the UK housing market. While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase. That may help to explain why growth in first-time buyer property prices eased in February, falling to +2.4%, in contrast to homemover price inflation which accelerated, reaching +3.7%. While house price growth has slowed overall, market activity remains strong and comparable to prepandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs. While those affordability challenges persist, the ongoing shortage of housing supply coupled with sustained demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year.”
Richard Donnell, Executive Director, Zoopla
“The housing market remains resilient with more people looking to move home in 2025 and 2026 than this time last year. Average earnings growth of 6% over the last year, well ahead of inflation, is supporting buyer confidence and helping to reset affordability. There has been a sizable increase in the number of homes for sale in the early weeks of the year, which is giving buyers greater choice and stronger negotiating power. Alongside higher stamp duty costs coming in for many from April, we expect house price inflation to be kept in check at 2-2.5%, with above-average growth in more affordable markets outside southern England.”
Colleen Babcock, Property Expert at Rightmove
“New sellers are showing some pricing restraint after a fast start to the year, being mindful of both the high level of seller competition, and in England also of the looming stamp duty deadline and extra costs for some buyers. Agents report that some of the steam is coming out of new sellers’ price expectations to fit the changing market conditions, which is a sensible reaction to attract buyer interest, and it will also help to support activity levels. The upcoming stamp duty deadline in England remains a key talking point, and while some movers may not be affected at all, others will be more severely impacted. With the predicted conveyancing log-jam likely to cause some buyers to miss the deadline and end up paying more tax through no fault of their own, it would seem justifiable for the government to announce a short extension before the end of March.”
Andrew Montlake, Managing Director at Coreco
“There is no shortage of economic headwinds facing the property market, and affordability is a constant challenge for many buyers, but it remains as hardy as ever. The lack of supply is one key support of ongoing price growth in recent months but so, too, is the stamp duty deadline, which has caused a rush of transactions. The hope is that the rise in inflation is brief and that the base rate can be brought down sooner rather than later. Another rate cut or two this year would be a massive tonic for bricks and mortar.”
» 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. They have mainly been falling this year, and have continued to drop in March, despite fears the cuts may stall. 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 £268,087 in December 2024, up from £256,177 a year earlier, according to the latest HM Land Registry UK House Price Index. This means UK property prices are 4.6% higher than a year ago, but 0.1% lower month-on-month.
Most house price forecasts predict property prices will rise in 2025. For example, Capital Economics forecasts a 3.5% increase in property values, while Savills anticipates growth of 4%.
Demand from homebuyers was broadly flat in January, according to the Royal Institution of Chartered Surveyors (RICS), but a steady rise in sales is anticipated in the months ahead. The number of new properties being put for sale also increased in January, as did the number of property evaluations undertaken by surveyors.
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 77 days for sellers to secure a buyer in January, according to the latest Rightmove data. This is longer than at any time over the past 12 months, but may be explained by the seasonal slowdown in the property market over the festive period. The shortest length of time taken to find a buyer in the past year is 59 days, as reported in June and July.
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 four months in a row. According to the latest Land Registry data, property values in London dropped 0.3% between November and December, and are virtually unchanged compared with a year earlier. The average house price in London stands at £548,939, a few hundred pounds lower compared to December 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?
