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Housing market "has proved critics wrong time and time again" as house prices increase by 5.4%

ended 16. April 2025

Average UK house prices increased by 5.4%, to £268,000, in the 12 months to February 2025, up from 4.8% in the 12 months to January 2025, according to official data published today. Average prices rose to £292,000 (5.3%) in England, £207,000 (4.1%) in Wales, and £186,000 (5.7%) in Scotland, in the 12 months to February 2025. Meanwhile, average UK monthly private rents increased by 7.7%, to £1,332, in the 12 months to March 2025, down from 8.1% in the 12 months to February 2025. Average rents increased to £1,386 (7.8%) in England, £792 (8.9%) in Wales, and £1,001 (5.7%) in Scotland, in the 12 months to March 2025. Newspage asked property experts for their views, below.

7 responses from the Newspage community

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Harps Garcha
Director at Brooklyns Financial
The UK housing market continues to show real resilience despite everything else going on. With mortgage rates coming down in recent weeks and lenders becoming more innovative in their offerings, the outlook is looking more positive. That said, although rent inflation has slowed, it’s still running higher than CPI inflation, making life tough for renters. There’s also growing concern about how the Renters Reform Bill might affect the rental sector moving forward.
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Bob Singh
Founder at Chess Mortgages
Today’s data on house prices is a clear signal that the UK housing market is as resilient as ever. It has proved critics wrong time and time again. Buyers who were waiting for the drop will be sorely disappointed and their goal will be moving further away. Such figures will give lenders the confidence to lend at higher loan-to-values, as rates also look set to take a dive in the coming months. No doubt Labour will take all the credit for this data but tenants will be facing a squeeze with rents outpacing inflation almost twofold in some parts of the country.
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Scott Gallacher
Director at Rowley Turton
House prices are up 5.4%, rents up 7.7% — where’s the relief Rachel Reeves promised? We keep hearing about 1.5 million new homes, but for now, all we see is young people being left behind. Rents are rising faster than wages, which are up 5.9%, meaning renters are still getting poorer — especially those trying to save for a deposit. Without a serious boost in housing supply, we’re locking an entire generation into a punishing rental trap while the dream of homeownership drifts further out of reach.
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Andrew Montlake
CEO at Coreco
Once again, the property market has shown how resilient it is in the face of countless economic headwinds. With major lenders now cutting rates, the expected post stamp duty change lull may not be as pronounced as originally thought. It's encouraging to see average rents are ticking down, as tenants are under a lot of pressure. It's already hard to save for a deposit so slightly lower rents will at least offer some support.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
There's no sign of today's dip in inflation here as both house prices and rental costs increase, adding to the cost of living. We need more housing stock built, and quickly, but do we have acceptable sites and the builders to achieve that outcome?
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
These numbers show that the housing market continues to be an unstoppable juggernaut going in only one direction: up. While not immediately evident, the rise in prices is a sign that the UK needs more housing stock. Supply isn't meeting demand, which is one reason prices continue to increase despite various economic headwinds. We really need the government to meet their target of building 1.5 million homes by 2029. Otherwise, these prices could continue to increase, making property ownership and even renting trickier for many.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Your three-bed semi now costs about the same as a SpaceX ticket. Britain’s property market continues to defy logic, gravity, and the collective groans of first-time buyers. Despite Trump’s trade tantrums, NI hikes, and stamp duty changes that felt like a fiscal uppercut, buyers and sellers are elbowing their way into transactions like it’s Black Friday at IKEA. Asking prices hit a record £377k this month, up 1.3% annually, because nothing says “global uncertainty” like Brits paying a premium for a shed with planning. Trump’s “Make Mortgages Great Again” has buyers nibbling in the hope of rate cuts. However this could be less a renaissance and more a sugar rush before the next inflationary hangover. Meanwhile, rents remain as negotiable as a porcupine’s hug: BTL mortgage rates are dipping, but landlords are busy absorbing shrapnels from Angie's RRB attack. Midlands and Northern regions smashing price records, while the South East clings to its Victorian semis and fraying pride.