UK house price latest 2025: what's happening to property values near you


Updated on 24 January 2025 | 30 Comments

The average house price jumped more than £11,000 last year, with similar increases forecast for 2025. See what's happening to values near you.

Feeling a bit lost with so many house price reports out there? 

The HomeOwners Alliance House Price Watch looks at all the information from the various property indices to give you one easy-to-digest round-up of everything you need to know.

So, let's look at how prices have changed over the past month and year.

What’s going on with house prices?

When you average out the latest figures reported by all the major indices, prices jumped 0.9% in the last month (see chart below).

Looking over the longer term, which generally provides a more reliable snapshot of the housing market's performance, prices increased by 4% over the whole of 2024.

With the typical UK home now valued at around £292,000, that means prices are more than £11,000 higher than at the end of 2023.

While there are huge regional variations (see the next section for more), the latest data does suggest values are on a steady upward trend and that the volatility seen in the last couple of years is now a distant memory.

Indeed most analysts believe we'll see similar increases across this year.

“Looking ahead to 2025, some volatility is expected with upcoming changes to Stamp Duty and uncertainty around the impact of the budget on consumer confidence," said Homeowner's Alliance.

“Generally though, with interest rates expected to fall gradually and earnings growth expected to outpace house price inflation, we expect to see house prices rise 4% over the course of 2025.”

Overview of house prices over the last month and year (Image: HomeOwners Alliance)

7 reasons why no one is buying your house

What's happening to house prices near me?

Land Registry has the most comprehensive data regarding housing stock, and it provides a handy regional breakdown of house prices across the UK.

This data takes slightly longer to compile so isn't quite as up-to-date as the other property indices – its latest prices cover up to November 2024 – but it nonetheless provides an interesting insight into how areas are faring relative to each other. 

In the 12 months up to that point, prices increased in every region except for London, where prices dipped 0.1%.

The Northern Irish housing market has proved the most buoyant over that period, with prices rising a remarkable 6.2%, followed by the North East of England.

See the table below for a full breakdown of prices by region. 

Monthly and annual changes in house prices in the UK. (Image: HomeOwners Alliance)

What the indices say

HomeOwners Alliance
“House prices finished the year up 3.8% on average and 2024 transactions are expected to be up 10% year on year.

“Looking ahead to 2025, some volatility is expected with upcoming changes to Stamp Duty and uncertainty around the impact of the budget on consumer confidence.

“Generally, though with interest rates expected to gradually fall and earnings growth expected to outpace house price inflation, we expect to see house prices rise 4% over the course of 2025.”

Rightmove
“New seller asking prices drop with the usual monthly fall as Christmas approaches. 

“Despite the festive lull, activity remains substantially stronger than the same period a year ago with the number of sales being agreed up by 22% and new buyer demand up by 13%.

“Rightmove’s 2025 forecast is that average new seller asking prices will rise by 4%, our highest prediction since 2021 with lower mortgage rates releasing some of the pent-up housing demand and putting modest upwards pressure on prices.”

Nationwide
“UK house prices ended 2024 on a strong footing, up 4.7% compared with December 2023, though prices were still just below the all-time high recorded in summer 2022.

“Mortgage market activity and house prices proved surprisingly resilient in 2024 given the ongoing affordability challenges facing potential buyers.  

“Upcoming changes to Stamp Duty are likely to generate volatility, as buyers bring forward their purchases to avoid the additional tax. 

“But, providing the economy continues to recover steadily, as we expect, the underlying pace of housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth, where the latter is likely to remain broadly in the 2-4% range in 2025.”

 PROMOTION 

Get the best price on a new boiler

A new boiler could help you save £100s every year on your energy bills. Boiler Guide can help you find a great deal by letting you compare quotes from local engineers. It only takes a minute!

Get your free quotes now

Halifax
“The housing market was broadly steady at the start of 2024, with house price growth taking off from the summer onwards.

“In the latter half of the year, house prices grew in response to the falls in mortgage rates, alongside income growth, both leading to financial pressures somewhat easing for buyers.

“Impending changes to Stamp Duty thresholds have also given prospective first-time buyers even greater motivation to get on the housing ladder and bring any home-buying plans forward.

“Together, these elements meant mortgage demand picked up, hitting the highest level in over two years and back to levels seen pre-pandemic.

“Where does that leave the housing market for 2025? Providing employment conditions don’t deteriorate markedly from a more recent softening, modest house price growth in the range of 0% to +3% is expected for 2025, along with a further small increase in the number of transactions.”

Zoopla
“Sales market activity has rebounded over 2024 as buyers and sellers return to the market.

“This has boosted sales volumes, but buyers remain price-sensitive, especially in the wake of the Budget and uncertainty over the outlook for mortgage rates in 2025. 

“We expect house prices to rise by 2.5% over 2025 with 5% more sales compared to 2024.”

RICS
“The November 2024 RICS Residential Survey results remain consistent with a gentle up-trend across the market, with metrics on new buyer demand, new instructions and house prices all continuing to register readings in expansionary territory.

“Looking ahead, despite the rise in mortgage interest rates seen over recent weeks, respondents still foresee a modest improvement in sales activity over the near-term, albeit expectations have been scaled back somewhat.”

Comments


Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.