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Average UK house prices increased by 6.4% in the 12 months to March 2025

ended 21. May 2025

Average UK house prices increased by 6.4%, to £271,000, in the 12 months to March 2025, up from 5.5% in the 12 months to February 2025, according to new data published this morning. Average house prices increased to £296,000 (6.7%) in England, £208,000 (3.6%) in Wales, and £186,000 (4.6%) in Scotland, in the 12 months to March 2025.

Meanwhile, Average UK monthly private rents increased by 7.4%, to £1,335, in the 12 months to April 2025, down from 7.7% in the 12 months to March 2025. Average rents increased to £1,390 (7.5%) in England, £795 (8.7%) in Wales, and £999 (5.1%) in Scotland, in the 12 months to April 2025. In Northern Ireland, average rents increased to £843 (7.8%) in the 12 months to February 2025. In England, private rents annual inflation was highest in the North East (9.4%) and lowest in Yorkshire and The Humber (4.0%), in the 12 months to April 2025.

Newspage asked property and mortgage market experts for their views, below.

4 responses from the Newspage community

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Editor
Katy EatentonVerified
Mortgage & Protection Specialist at Eatenton Finance
The stamp duty deadline almost certainly played a role in this house price data, as demand soared in the latter stages of 2024 and early 2025. Following this morning's inflation data, more rate cuts from the Bank of England are no longer guaranteed this year so this, on top of the increased stamp duty now payable, is likely to see house price growth taper off. If mortgage rates increase, as many expect them to in the days ahead, that could also impact prices moving forward and apply downward pressure. It's encouraging to see rents come down, which takes the pressure off tenants and those seeking to save for a deposit.
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Andrew MontlakeVerified
CEO at Coreco
There was a significant uptick in activity levels in the months leading up to March as buyers sought to beat the stamp duty deadline. This clearly drove up prices. With inflation edging up sharply this morning, and mortgage rates likely to follow as expectations of further base rate cuts reduce, this could see average values start to retreat again. If prices do start to ease, they will only go so far as there is a fundamental lack of supply. The lack of stock and homes being built acts as a glass floor uner house prices, whatever the doommongers say to the contrary. After a torrid year or two, renters are at least seeing some of the pressure they have been under relent.
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Editor
Rob PetersVerified
Principal at Simple Fast Mortgage
Confidence is returning to the housing market. A 6.4% rise in average prices shows buyers are still active and motivated, likely encouraged by softening interest rates and the broader expectation of more affordable mortgage products ahead.

Meanwhile, rental demand remains sky-high, which is great news for landlords and investors. Even with rent inflation easing slightly, yields remain strong, particularly in regions like the North East. All in all, the market’s proving far more resilient than many predicted just a few months ago.
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Kundan BhaduriVerified
Entrepreneur, Investor and Landlord at The Kushman Group
The stark reality revealed in today's ONS figures should terrify anyone concerned with Britain's housing crisis. While house prices surge 6.4% nationally, the rental market's relentless 7.4% inflation directly contradicts Labour's interventionist promises. Their punitive landlord policies have triggered precisely what housing economists predicted: a catastrophic supply contraction. The North East's extraordinary 14.3% house price growth versus London's anaemic 0.8% reveals not a "rebalancing economy" but desperate tenants fleeing rental markets where professional landlords are abandoning ship. Starmer's administration has somehow managed to simultaneously accelerate house price inflation while decimating rental stock – a policy failure of breathtaking proportions. Rather than targeting "rogue landlords" with blanket legislation, Labour should incentivise investment through targeted tax reforms that acknowledge rental housing as essential infrastructure for the nation.