According to the latest UK House Price Index from HM Land Registry, UK average house prices rose 3.7% in the year to June 2025, with a monthly increase of 1.4% from May 2025. The average price of property in the UK in June 2025 was valued at £269,000.
The latest regional data continued to show significant regional variations in prices across the UK, with the North East leading the way with the highest annual growth of 7.8%. In contrast, South West house prices only increased in the year to June by 1.5%, with the London market seeing markedly lower annual growth of 0.8%.
Meanwhile, figures from the Office for National Statistics (ONS) showed that the rate of rental growth continued to ease, as this was notably lower than the 6.7% rise seen in the year to June.
In England, private rents were 6% higher at an average of £1,398, while in Wales, a 7.9% rise put rents at £807 per month.
Scotland recorded a 3.6% increase to £999 a month, while private rents in Northern Ireland were 7.4% up in the 12 months to May at £855.
Industry reactions:
Jason Tebb, President of OnTheMarket: “Although historic, the Land Registry data shows house values continued to rise on an annual basis in June, with the average property price £9,000 higher than a year ago, even though affordability continues to be a challenge and is keeping prices in check to an extent.
“The market continues to demonstrate resilience, assisted by five interest rate reductions in the past year. These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy. However, with inflation rising again to 3.8 per cent in July, its highest level in a year and a half, this may persuade the Bank to press the pause button for now with regard to further reductions.”
Matt Thompson, head of sales at estate agency Chestertons: “Compared to summer of last year, we have seen a more active property market which has been driven by an influx of vendors putting their homes up for sale. This has given some house hunters a more varied selection of properties to choose from which inevitably led to more contracts being exchanged. In London, buyer demand has remained relatively strong which is resulting in stable or increasing property values in certain areas. Other parts of the capital such as prime central London, however, registered a slight price adjustment that has given more domestic buyers the opportunity to purchase a property in sought-after locations within their initial budget.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts: “We have been busier than expected in our offices, with strong agreed sales and very few fall-throughs. Realistic pricing from the outset is driving momentum, and well-presented homes – especially family houses in good school catchments – are attracting committed buyers.
“At the top end, stamp duty is a constant talking point; while the high cost is slowing some decisions, the desire for more space is still pushing people to commit. A bigger influence has been sellers looking to offload rental properties before buying to minimise their stamp duty bill, which will inevitably affect the lettings market.
“What’s surprised us most is the first-time buyer flat market – it slowed after the stamp duty holiday ended, but has now rebounded more strongly than we’ve seen in years. That said, there are still well-priced homes sitting unsold, often because buyers are holding back.
“If you’re waiting for prices to drop, you might be right – but the property you want could be withdrawn, nothing suitable may come up, or prices could rebound far faster than they fall. If you see something you like but aren’t sure on the price, call the agent to gauge the seller’s position before you view – far better than hesitating and watching someone else buy it.”
Nathan Emerson, CEO of Propertymark: “House price growth is widely regarded as being an important factor in boosting overall economic progress, so it is reassuring to see yet more headway as the housing market continues to see momentum.
“Despite the impact that Stamp Duty hikes and domestic and global factors have had on the economy, there are still convincing reasons to be optimistic about the property market in general. Total housing construction output has grown recently, and the UK Government and the devolved administrations are keen to meet their ambitious housing targets.
“Additional new housing stock should provide people with extra choice in the longer term and help enable those who aspire to buy grasp their ambitions.”
Jeremy Leaf, north London estate agent: “Another set of housing market data which confirms buyer and seller resilience as well as a determination to keep transactions alive and negotiate hard on price. That confidence has been supported by rising wages and easing affordability pressures, although not too much reliance should be placed on these numbers as they are a little dated but are the most comprehensive of all as include mortgaged and cash transactions.
“However, the looming, almost inevitable tax rises on the horizon and increasing concerns about higher-than-expected inflation are likely to limit the depth and frequency of future interest rate cuts, which would have given a further boost to activity.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-latest-uk-house-price-data-15/
