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House prices up, rents down but "property market remains incredibly busy"

ended 16. July 2025

HOUSE prices increased by 3.9%, to £269,000, in the 12 months to May 2025, up from 3.6% in the 12 months to April 2025, according to official data published this morning.

In May, the average monthly price change for a property in the UK was 1.1%. Average house prices increased to £290,000 (3.4%) in England, £210,000 (5.1%) in Wales, and £192,000 (6.4%) in Scotland, in the 12 months to May 2025.

Meanwhile, average UK monthly private rents increased by 6.7%, to £1,344, in the 12 months to June 2025, down from 7.0% in the 12 months to May 2025.

Average rents increased to £1,399 (6.7%) in England, £804 (8.2%) in Wales, and £999 (4.4%) in Scotland, in the 12 months to June 2025. In Northern Ireland, average rents increased to £852 (7.6%) in the 12 months to April 2025.

In England, private rents annual inflation was highest in the North East (9.7%) and lowest in Yorkshire and The Humber (3.5%), in the 12 months to June 2025.

Reflecting on the data, Shaun Sturgess, Director at Swansea-based broker Sturgess Mortgage Solutions, said “the property market remains incredibly busy. Buyers are undeterred, with many seeing the long-term value and stability of homeownership as a better alternative to rising rents. I’m seeing more and more people realising that their monthly rent could be a mortgage instead. Even with prices edging up, demand is strong — especially here in South Wales — and the appetite to buy shows no signs of slowing. In fact, rising rents are pushing more first-time buyers to take action sooner. Many are tired of paying £800–£1,000 a month to a landlord when they could be investing in their own future. With competitive mortgage products still available and growing awareness around affordability, we’re likely to see activity remain high throughout the rest of the year".

Michelle Lawson, Director at Lawson Financial, said the data reflects what brokers are experiencing on the ground but warned rents could rise in the months ahead: “Property prices gently nudging up echoes the activity we are seeing. The tenant rent bubble seems to have reached a peak for now, but that could change quickly when the Renters Reform Bill and EPC changes kick in. We will possibly see a further increase in rents as landlords have no option but to pass increased costs onto their tenants."

Babek Ismayil, Founder at OneDome, added: “Falling rents will offer relief to the UK's tenants who have been under the cosh for too long. The increase in house prices shows activity levels are starting to rebound after the lull that followed the stamp duty deadline. The property market is showing its usual resilience and, if we get a rate cut in August, mortgage rates are likely to come down further, giving buyer sentiment a real shot in the arm. If the Bank of England cuts rates on 7 August, expect a busy end to 2025.”

Craig Fish, Director at Lodestone, said “house prices are holding firm, so it’s great to see lenders starting to ease affordability checks off the back of recent government changes. As for renters, after months of sharp rent hikes, things are finally starting to settle”.

Emma Jones, Managing Director at Whenthebanksaysno.co.uk, added that “this latest data paints a picture of a property market still under pressure but showing signs of stabilisation. The acceleration in house price growth, albeit modest, suggests renewed buyer confidence likely influenced by expectations of interest rate cuts and persistent rental inflation. For prospective buyers, especially first-timers, the window to act before conditions tighten again could be narrowing”.

Andrew Montlake, CEO at Coreco, commented: “During the first half of 2025, the property market was definitely skewed by the stamp duty changes, with a lot of activity brought forward to secure the savings on offer. Now, things are now getting back on track. Even though inflation ticked up slightly this morning, making the Bank of England's tightrope walk between curbing inflation and promoting growth that little bit harder, it's still likely that we will see at least one rate cut this year, if not two. The economy is stalling and desperately needs an injection of life, which will boost sentiment in bricks and mortar and see increased buyer activity. The second half of the year could be busy if the Bank of England delivers a rate cut in August.”

Ranald Mitchell, Director at Charwin Mortgages, said the slight fall in rents offers tenants some relief: “House prices are edging up again, and faster than last month, proof that the property market hasn’t rolled over just yet. Buyers hoping for a big drop might be waiting a while. At the same time, rents are still sky-high, but the pace of increases is finally slowing, offering tenants a sliver of relief. In some regions, though, rent hikes are still running wild, up nearly 10% in the North East. Whether you're renting or buying, it’s a tight squeeze. The message? If you see a deal that works, grab it as waiting could leave you priced out altogether”

10 responses from the Newspage community

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Shaun Sturgess
Director at Sturgess Mortgage Solutions
House prices in Wales have risen 5.1% to £210,000, and rents are up 8.2% year-on-year. However, despite these increases, the property market remains incredibly busy. Buyers are undeterred, with many seeing the long-term value and stability of homeownership as a better alternative to rising rents. I’m seeing more and more people realising that their monthly rent could be a mortgage instead. Even with prices edging up, demand is strong — especially here in South Wales — and the appetite to buy shows no signs of slowing. In fact, rising rents are pushing more first-time buyers to take action sooner. Many are tired of paying £800–£1,000 a month to a landlord when they could be investing in their own future. With competitive mortgage products still available and growing awareness around affordability, we’re likely to see activity remain high throughout the rest of the year.
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Babek Ismayil
CEO at homebuying platform OneDome
Falling rents will offer relief to the UK's tenants who have been under the cosh for too long. The increase in house prices shows activity levels are starting to rebound after the lull that followed the stamp duty deadline. The property market is showing its usual resilience and, if we get a rate cut in August, mortgage rates are likely to come down further, giving buyer sentiment a real shot in the arm. If the Bank of England cuts rates on 7 August, expect a busy end to 2025.
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Andrew Montlake
CEO at Coreco
During the first half of 2025, the property market was definitely skewed by the stamp duty changes, with a lot of activity brought forward to secure the savings on offer. Now, things are now getting back on track. Even though inflation ticked up slightly this morning, making the Bank of England's tightrope walk between curbing inflation and promoting growth that little bit harder, it's still likely that we will see at least one rate cut this year, if not two. The economy is stalling and desperately needs an injection of life, which will boost sentiment in bricks and mortar and see increased buyer activity. The second half of the year could be busy if the Bank of England delivers a rate cut in August.
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Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
House prices are edging up again, and faster than last month, proof that the property market hasn’t rolled over just yet. Buyers hoping for a big drop might be waiting a while. At the same time, rents are still sky-high, but the pace of increases is finally slowing, offering tenants a sliver of relief. In some regions, though, rent hikes are still running wild, up nearly 10% in the North East. Whether you're renting or buying, it’s a tight squeeze. The message? If you see a deal that works, grab it as waiting could leave you priced out altogether
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Editor
Michelle Lawson
Director at Lawson Financial
Property prices gently nudging up echoes the activity we are seeing. The tenant rent bubble seems to have reached a peak for now, but that could change quickly when the Renters Reform Bill and EPC changes kick in. We will possibly see a further increase in rents as landlords have no option but to pass increased costs onto their tenants. With the slow down in housebuilding, people have to live somewhere. First-time buyers are now being boosted from renting into the property market with the availability of low and no deposit mortgages and also enhanced affordability following a relaxation of the rules.
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Samuel Mather-Holgate
Managing Director & IFA at Mather and Murray Financial
As the base rate recedes, so does the need for landlords to increase rents to cover their costs. I expect rents to remain stable for the next 24 months, as the economy creaks and rates decline. House price growth may tick up as lender criteria loosen following recent government announcements. If they can get more houses built, this might slow the rate of increase and be positive for those wanting to get on the ladder.
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Dariusz Karpowicz
Director at Albion Financial Advice
The property market's playing a cruel game of seesaw. While house prices climb 3.9% to £269,000, rents are barely easing off the throttle, dropping just 0.3 percentage points. This modest rental relief feels like a plaster on a broken leg when you're still paying £1,344 monthly whilst watching homeownership drift further away. Despite the marginal rent slowdown, buyers face an uphill battle with Welsh properties jumping 5.1% and Scottish homes up 6.4%. Many tenants are realising their £800-£1,000 monthly payments could fund a mortgage instead, yet rising prices are making that leap increasingly difficult. If you spot a deal that works, grab it, as waiting could price you out entirely in this unforgiving market.
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Aaron Strutt
Product and Communications Director at Trinity Financial
There are lots of buyers hoping to get on the property ladder soon and they will be pleased to see prices come down a bit. The price of a house really does depend on the area and the number of bidders. Lots of buyers are holding off for the best price but they are starting to realise they need to come down a bit to sell their home.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
This latest data paints a picture of a property market still under pressure but showing signs of stabilisation. The acceleration in house price growth, albeit modest, suggests renewed buyer confidence likely influenced by expectations of interest rate cuts and persistent rental inflation. Meanwhile, the slight dip in rent inflation may offer temporary respite to tenants, but with regional disparities as stark as ever particularly in the North East affordability remains a major concern. Unless housing supply increases substantially, both rents and prices will likely remain elevated. For prospective buyers, especially first-timers, the window to act before conditions tighten again could be narrowing.
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Craig Fish
Director at Lodestone Mortgages
House prices are holding firm, so it’s great to see lenders starting to ease affordability checks off the back of recent government changes. As for renters, after months of sharp rent hikes, things are finally starting to settle. Why? Most landlords have now remortgaged onto higher rates, meaning those increases have already been priced in. Aside from a few still clinging to ultra-low mortgage deals, the bulk of rent rises may be behind us for now.