Slowing rate of house price growth "can help make that first rung more accessible"
AVERAGE UK house prices increased by 2.8%, to £270,000, in the 12 months to July 2025, down from 3.6%, in the 12 months to June 2025, according to official data published this morning — something property experts have said will be welcomed by aspiring homeowners.
Average house prices increased to £292,000 (2.7%) in England, £209,000 (2.0%) in Wales, and £192,000 (3.3%) in Scotland, in the 12 months to July 2025.
Meanwhile, average UK monthly private rents increased by 5.7%, to £1,348, in the 12 months to August 2025, down from 5.9% in the 12 months to July 2025.
Average rents increased to £1,403 (5.8%) in England, £811 (7.8%) in Wales, and £1002 (3.5%) in Scotland, in the 12 months to August 2025.
In Northern Ireland, average rents increased to £860 (7.2%), in the 12 months to June 2025.
In England, private rents annual inflation was highest in the North East (9.2%) and lowest in Yorkshire and The Humber (3.4%), in the 12 months to August 2025.
Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, said: "The rate of house price growth slowing may not be the news homeowners want to see but for those aspiring to get on the ladder it can help make that first rung more accessible.
"It's been a curious year in the property market, with demand remaining fairly strong despite all kinds of uncertainty. But buyers are negotiating hard and, for now at least, sellers are having to play ball.
“Further base rate cuts this year are now seen as unlikely so the market may not be as busy in the Autumn as it otherwise might.”
Daniel Hobbs, CEO at Rayleigh-based New Leaf Distribution, added: "With inflation proving sticky and the Bank of England highly unlikely to cut rates on Thursday, it could be a quieter autumn than usual.
“Slowing house price growth will at least help with affordability and buyers on the whole are in the driving seat at present. There's still demand in the market and always will be but sellers are having to be realistic in their pricing or risk seeing their properties languish on the market.”
Andrew Montlake, CEO at London-based Coreco, said it's a challenging market for tenants: “Though the rate of rental growth has slowed slightly, tenants are still having a tough time of it. Saving for a deposit is like Mission Impossible for many aspiring homeowners.”
He added: “House price growth slowing at least offers would-be buyers some consolation.”
Babek Ismayil, CEO at homebuying platform, OneDome, said it's a buyers' market: "The latest UK HPI confirms that annual house price growth slowed in the year to July, underlining how finely balanced the market still is. Earlier resilience has given way to more cautious sentiment as buyers weigh affordability, borrowing costs and wider economic uncertainty. This remains a buyers' market.
"More homes are coming onto the market, and that extra choice is giving purchasers the upper hand in negotiations. Sellers who remain realistic on price are managing to get deals done, while those clinging to over-optimistic valuations are finding that viewings and offers are thin on the ground.
“Regionally, the story is increasingly uneven. Northern England, Wales, Scotland and Northern Ireland are seeing steadier growth thanks to lower entry prices and slightly improved affordability.
“London and much of the South, by contrast, continue to struggle, where stretched household budgets and high mortgage multiples are holding back demand.”
Meanwhile, Eamonn Prendergast, Chartered Financial Adviser at Bromley-based Palantir Financial Planning Ltd, said: "Rents are rising twice as fast as house prices and tenants are feeling the squeeze. With the average rent now £1,348, up nearly 6% in a year, affordability is being stretched to breaking point.
"In some regions, like the North East, rents are climbing at over 9%, leaving households paying more just to stand still. Meanwhile house price growth has slowed to 2.8%, underlining a two-speed housing market where renters bear the brunt."
