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HPI: "Stamp duty deadline may have played a role in the slight increase in average annual house prices"

ended 26. March 2025

Average UK house prices increased by 4.9%, to £269,000, in the 12 months to January 2025, up from 4.6% in the 12 months to December 2024, according to official data published this morning. Average house prices increased to £291,000 (4.8%) in England, £210,000 (6.0%) in Wales, and £187,000 (4.6%) in Scotland, in the 12 months to January 2025. Meanwhile, average UK monthly private rents increased by 8.1%, to £1,326, in the 12 months to February 2025, down from 8.7% in the 12 months to January 2025. Average rents increased to £1,381 (8.3%) in England, £785 (8.5%) in Wales, and £998 (5.8%) in Scotland, in the 12 months to February 2025. In Northern Ireland, average rents increased to £832 (8.1%) in the 12 months to December 2024. In England, private rents annual inflation was highest in London (9.9%) and lowest in Yorkshire and The Humber (4.8%), in the 12 months to February 2025. Newspage asked property experts for their views, below.

 

 

5 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
This data once again highlights the resilience of bricks and mortar in what is a volatile economic climate. In the UK, demand for property is a constant. If the Bank of England cuts rates at its next meeting following this morning's lower than expected inflation number, that will further stimulate the market. It's encouraging to see average rents coming down as embattled tenants need all the support they can at present but they are still high. They may rise again if landlords continue to leave the sector as many are doing. 2025 is unlikely to see stellar house price growth but average values are likely to continue to edge up at a moderate pace due to the lack of supply.
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Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
The stamp duty deadline may have played a role in the slight increase in average annual house prices in January relative to December. December and January were both very busy as people sought to beat it. Given the weakness of the economy, 2025 is highly unlikely to deliver barnstorming house price growth but equally it's also unlikely to see house prices retreat due to the lack of supply. Falling rents are a positive and offer a slight reprieve for tenants after a very difficult couple of years but they're still high.
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Chris Barry
Director at Thomas Legal
Though rents are falling, they may not fall for much longer. Landlords are withdrawing from the market due to increased costs, which will push rents even higher in the months ahead. The full impact of the landlord exodus has yet to hit home. Meanwhile, investors have to decide whether build to rent is more profitable and safer than cash in the bank or a FTSE tracker — and right now it doesn’t look that way.
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Pete Mugleston
Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk
The continued rise in house prices and elevated rents highlights the ongoing affordability crisis facing UK households. With average property prices climbing 4.9% annually and rents rising 8.1%, many are finding it harder to get onto the property ladder or save for a deposit. London’s near-10% rent inflation is particularly concerning. While rising house prices may reflect renewed market confidence, the imbalance between wages, rents and property values is squeezing buyers and renters alike. Without increased housing supply and targeted support for first-time buyers, these trends risk making homeownership even more inaccessible for the average person.
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Sean Horton
Managing Director at Respect Mortgages
Landlords are feeling the squeeze from all angles. Higher mortgage rates have hammered their margins, while EPC upgrade costs add another layer of financial pain. With interest rates still elevated and new energy efficiency rules looming, many have little choice but to bump up rents to stay afloat. This cost-passing explains the stark 8.3% rent jump across England, with London landlords pushing through the biggest increases at nearly 10%. The buy-to-let sums simply don't work otherwise.