UK residential property prices rose by an average of 2.8% in the 12 months to July 2025, according to the latest figures released by the Office for National Statistics (ONS).
The average UK home was valued at £270,000 in July – up £8,000 compared to the same month last year.
Across the nations, Northern Ireland recorded the strongest growth, with average house prices rising by £10,000 to £185,000 in Q2 2025 – a 5.5% annual increase. Scotland followed with a 3.3% rise, bringing the average price to £192,000.
In England, average house prices climbed 2.7% year-on-year to £292,000, while Wales saw a 2% increase, reaching an average of £209,000.
Regionally, the North East of England posted the highest annual house price inflation, with prices rising by 7.9% – slightly up from 7.7% in June. In contrast, London saw the weakest growth, with house prices increasing just 0.7% over the same 12-month period.
The data highlights continued, though uneven, growth across the UK housing market, with affordability pressures and regional demand driving varied outcomes.
Industry reactions:
Richard Donnell, executive director at Zoopla: “Rents and house prices are slowing across the UK as housing demand cools and affordability pressures bite on what people can pay for rent and mortgages. This has big implications for home building where weaker demand is holding back investment in growing supply. The government needs to either support demand or remove the impediments to getting more home built.”
Jean Jameson, chief sales officer at Foxtons: “As expected, August brought a typical summer slowdown in new buyer activity, however this is beginning to pick up now that buyers and sellers are back from summer holidays and schools have restarted. Buyer demand has also been boosted by improved mortgage lending with higher loan to income multiple products on offer, as well as the fact mortgage rates are lower compared to this time last year. Nevertheless, there understandably remains some uncertainty ahead of the Autumn Budget. Overall, house prices have grown over the last 12 months, and where properties are priced pragmatically, they are still attracting interest and selling quickly.”
Tom Bill, head of UK residential research at Knight Frank: “Price growth is being pushed lower by higher supply and weaker demand. Supply has been boosted an overhang of property since April’s stamp duty cliff edge and the fact more landlords are selling due to the Renters Rights Bill. Stable mortgage rates have supported demand but a general mood of economic uncertainty, which will become more intense as November’s Budget approaches, has made some buyers think twice and we have revised down our UK forecast this year to 1% from 3.5%.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts: “House price growth is showing further signs of flattening, which may reinforce the current market caution leading to more sellers adjusting their expectations as to what they can achieve for their home.
“A sudden drop in prices is not expected as many people still have low mortgage rates and in our area in particular, plenty of equity in their homes and stable jobs. Well-priced, well-located homes continue to perform.
“Affordability remains the brake on the housing market. Never in my 25 years in the industry have I had so many conversations with people about the cost of stamp duty. The high cost of moving is prohibiting home moves that people want to make, but don’t feel confident enough to do so and is leading to stagnation in the market in certain areas.”
Marc von Grundherr, director of Benham and Reeves: “The latest house price figures show that the market has continued to move forward, with uplifts in both monthly and annual growth demonstrating that there remains a good appetite for homeownership – even if it isn’t as insatiable as we’ve seen in previous years.
Whilst the London market continues to trail many other regions, it’s important to remember that even marginal percentage increases in the capital translate into far greater sums on the table for sellers.
So whilst a more muted performance may come as cause for concern for the capital’s home sellers, this continued growth underlines London’s status as the nation’s most resilient property market.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The figures show that the housing market continues to demonstrate resilience, with average prices rising by 2.8% in the year to July. While this represents a slowdown from June’s growth, the combination of steady demand, improved mortgage approvals, and a rise in available stock has underpinned activity through the summer.
“The recent cut in the Bank of England’s base rate has offered welcome relief to borrowers, though inflationary pressures and speculation around potential housing tax reforms are tempering confidence in some areas. We are already seeing signs of greater price realism, with sellers increasingly adjusting to meet the market, which is helping transactions flow more smoothly.
“For buyers and sellers alike, the message is clear: well-priced homes are attracting attention, while those that overshoot tend to linger. With the window to complete before Christmas now narrowing, realistic pricing and proactive decision-making are more important than ever. Looking ahead, the Autumn Budget will be a key moment for sentiment, but the fundamentals suggest that the market will continue to move forward in a steady, sustainable way.”
Verona Frankish, CEO of Yopa: “The market has continued to improve in July, with both monthly and annual rate of house price growth strengthening. This slow but steady performance has been a consistent theme throughout the year so far and there’s little to suggest that this will change.
“That said, with the Autumn Budget on the horizon, we may see a momentary dip as the nation’s homebuyers hold off in the hope of a stamp duty shake-up. Whether such a reprieve will come to fruition remains to be seen, but either way, we could well see a spike in market activity following the Autumn Budget as the market gathers pace ahead of the Christmas break.”
Nathan Emerson, CEO of Propertymark: “It is positive to see the housing market progressing forward in strength. As we move towards the autumn months, hopefully this momentum will continue.
“There continues to be two factors that may weigh heavily on consumers’ minds as they decide on what to do next regarding potentially approaching the buying and selling process. Any decision that the Bank of England makes tomorrow regarding base rates will determine whether people can realistically afford to relocate, and the uncertainty about potential further Stamp Duty restructuring may impact those moving house in England and Northern Ireland.
“Though we have clarification that the Budget will take place on 26 November 2025, this may cause people to delay their next house move in the meantime. For some, however, these factors will not impact their decisions due to the importance and urgency of their home move and may be able to more easily absorb any additional financial constraints to facilitate a home move.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-latest-uk-house-price-data-16/
