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Average house prices up: "The property market has once again proved the doubters wrong"

ended 20. August 2025

PROPERTY market experts have said the housing market has once again proved the doubters wrong and is showing “remarkable resilence”.

New data published today shows average UK house prices increased by 3.7%, to £269,000, in the 12 months to June 2025, up from 2.7% in the 12 months to May 2025.

Average house prices increased to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, in the 12 months to June 2025.

Meanwhile, UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July 2025, down from 6.7% in the 12 months to June 2025.

Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months to July 2025.

In Northern Ireland, average rents increased to £855 (7.4%), in the 12 months to May 2025.

This comes as inflation in the UK rose today to 3.8%.

Andrew Montlake, CEO at London-based Coreco, said the housing market continues to defy expectations.

He added: "The property market has once again proved the doubters wrong. It has bounced back from the lull following the stamp duty deadline earlier this year. It's also encouraging to see rents come down slightly given the pressure tenants and aspiring homeowners are under. 

"This morning's inflation data could temper house price growth in the months ahead as mortgage rates may now start to edge up and there may be no more cuts from the Bank of England in 2025. In the coming days we could see an increase in SWAP rates which could see fixed rise and potentially dampen demand. 

“The economy is now on a knife edge, and with the spectre of stagflation looming large, policymakers have a headache over what their next move is to stimulate growth. The property market certainly won't fizzle out but property transactions may now be slightly more muted in the Autumn.”

Babek Ismayil, Founder at OneDome, said: "The Bank of England’s recent interest rate cut has been fundamental in supporting confidence but, with inflation rising to 3.8% in the 12 months to July, there is a real possibility that rate cuts may be paused for the rest of the year. 

“If that happens, we could see buyer and seller confidence plateau, with the market relying more heavily on improved mortgage product availability and competitive pricing to maintain momentum.”

Harry Goodliffe, Director at HTG Mortgages, said that renters are still struggling.

He continued: “House prices are up, and rents are still high. A near 6% rise in rents makes saving for a deposit almost impossible. Until we fix dead money taxes like stamp duty and bring in real first-time buyer support, tenants will stay trapped while homeowners see their assets grow. Even with more homes on the market, the brutal truth is many people simply can’t afford to buy or move right now.”

Bob Singh, Founder at Uxbridge-based Chess Mortgages, said the housing market is showing “remarkable resilence”.

He added: "This is clear evidence of a shortage of supply. House building is grinding to a halt while many disillusioned landlords are exiting the sector. These rises are in line with most forecasts and should be sustained given the new lender initiatives that are enhancing first-time buyer affordability. 

"The UK property market is showing remarkable resilience despite a backdrop of poor economic indicators and geo-political tensions. The next few months will show a clearer direction for the UK property market but today's inflation data could see mortgage rates edge up."

 Jonathan Moser, CEO at Mo'Living, said rents are likely to remain high into next year.

He added: “While rental inflation is easing slightly, demand in North London remains strong, driven by limited housing supply and rising operating costs for landlords. Without a significant boost to housing stock, rents are likely to remain elevated into 2026.”

7 responses from the Newspage community

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Editor
Bob Singh
Founder at Chess Mortgages
This is clear evidence of a shortage of supply. House building is grinding to a halt while many disillusioned landlords are exiting the sector. These rises are in line with most forecasts and should be sustained given the new lender initiatives that are enhancing first-time buyer affordability. The UK property market is showing remarkable resilience despite a backdrop of poor economic indicators and geo-political tensions. The next few months will show a clearer direction for the UK property market but today's inflation data could see mortgage rates edge up.
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Andrew Montlake
CEO at Coreco
The property market has once again proved the doubters wrong. It has bounced back from the lull following the stamp duty deadline earlier this year. It's also encouraging to see rents come down slightly given the pressure tenants and aspiring homeowners are under. This morning's inflation data could temper house price growth in the months ahead as mortgage rates may now start to edge up and there may be no more cuts from the Bank of England in 2025. In the coming days we could see an increase in SWAP rates which could see fixed rise and potentially dampen demand. The economy is now on a knife edge, and with the spectre of stagflation looming large, policymakers have a headache over what their next move is to stimulate growth. The property market certainly won't fizzle out but property transactions may now be slightly more muted in the Autumn.
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Editor
Harry Goodliffe
Director at HTG Mortgages
House prices are up, and rents are still high. A near 6% rise in rents makes saving for a deposit almost impossible. Until we fix dead money taxes like stamp duty and bring in real first-time buyer support, tenants will stay trapped while homeowners see their assets grow. Even with more homes on the market, the brutal truth is many people simply can’t afford to buy or move right now.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
This is why the government simply has to suceed in building new homes. There has been more demand than supply for a generation now and it continues to push up prices and rents. With the Renters Reform Bill placing tighter restrictions on landlords, we may see fewer rental properties available. This could squeeze rental prices up further. We need more new homes to bring prices down.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
Renters will be increasingly sceptical of government promises to solve the housing crisis when every indicator is still moving the wrong way. Housebuilding targets are still being missed, landlords are leaving the sector, and costs are being pushed up by new regulation and stamp duty hikes.

At the same time, house prices are rising faster than wages, leaving more people stuck in the rental market. With new inflation data today also showing that everyday prices are rising faster than expected, renters may soon lose faith in this Labour government.
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Babek Ismayil
CEO at homebuying platform OneDome
UK house prices have held steady but the housing market remains finely balanced. High levels of supply, particularly following the March stamp duty changes and a wave of landlords exiting the market, have kept the upward pressure in check, while demand is still being held back by fragile consumer confidence. This means we are unlikely to see a sharp rebound, but instead modest single-digit growth through the rest of 2025 as conditions slowly improve. The Bank of England’s recent interest rate cut has been fundamental in supporting confidence but, with inflation rising to 3.8% in the 12 months to July, there is a real possibility that rate cuts may be paused for the rest of the year. If that happens, we could see buyer and seller confidence plateau, with the market relying more heavily on improved mortgage product availability and competitive pricing to maintain momentum.
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Jonathan Moser
CEO at Mo'Living
While rental inflation is easing slightly, demand in North London remains strong, driven by limited housing supply and rising operating costs for landlords. We focus on helping landlords manage costs efficiently and keeping properties in top condition, so rent increases can be kept fair and sustainable. Tenants benefit from a well-maintained home and responsive service, while landlords see steady returns. Without a significant boost to housing stock, rents are likely to remain elevated into 2026, so proactive management will be key for both sides.