The average house price jumped almost 4% over the last year, but the market will likely be more subdued in the months ahead. 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 edged 0.2% upwards in the last month (see table below).
Looking over the longer term, which generally provides a more reliable snapshot of the housing market's performance, prices increased by 3.9% over the last 12 months.
This means the average home is now worth £268,000, according to the Land Registry – which has the most comprehensive set of property data.
Those who follow UK house price trends closely might have noticed that figure is far lower than usual: Land Registry data had estimated typical home values were around £290,000 in recent months.
There hasn't been a sudden crash in values but, rather, the organisation has changed the way it assesses prices, so this will now be the new base for official house price data.
What will happen to house prices in 2025?
While the housing market has started the year strongly with prices rising and demand from buyers up year-on-year, a looming hike to Stamp Duty and growing concerns over inflation could slow things down somewhat.
As HomeOwners Alliance notes: “New sales listings are up 10% on last year and demand for new mortgages remains high in spite of ongoing affordability pressures.
“Whether momentum will be sustained is uncertain – there has been a softening in consumer confidence over the economic outlook and higher Stamp Duty costs from April could also impact the market.
“With this backdrop and a healthy supply of homes for sale, house price growth is expected to be restrained in the months ahead.”
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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 December 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 remained unchanged.
The Northern Irish housing market has proved the most buoyant over that period, with prices rising a staggering 9%, followed by Scotland (6.9%) and the North East of England (6.7%).
See the table below for a full breakdown of prices by region.
What the indices say
HomeOwners Alliance
“Most of the indices report a strong start to market activity in 2025.
“New sales listings are up 10% on last year and demand for new mortgages remains high in spite of ongoing affordability pressures.
“Whether momentum will be sustained is uncertain -- there has been a softening in consumer confidence over the economic outlook and higher Stamp Duty costs from April could also impact the market.
“With this backdrop and a healthy supply of homes for sale, house price growth is expected to be restrained in the months ahead.”
Rightmove
“The number of new properties coming to market is 11% ahead of the same start-of-the-year period last year and the number of buyers contacting agents about properties for sale is 9% ahead of last year.
“However, despite the promising start to 2025, there are uncertainties ahead, including the pace and number of interest rate drops and the impact of the Stamp Duty deadline on 31 March.
“Mortgage rates remain sticky, blocking many buyers from significant affordability improvements.”
Nationwide
“The housing market continues to show resilience despite ongoing affordability pressures.
“While there has been a modest improvement over the last year, affordability remains stretched by historic standards.
“A prospective buyer earning the average UK income and buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 36% of their take-home pay – well above the long-run average of 30%.
“Furthermore, house prices remain high relative to average earnings, with the first-time buyer house price to earnings ratio standing at 5.0 at the end of 2024, still well above the long-run average of 3.9.”
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Halifax
"Affordability is still a challenge for many would-be buyers, but the market's resilience is noteworthy.
“There’s strong demand for new mortgages and growth in lending.
“With a Stamp Duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March.”
Zoopla
“The momentum in sales market activity from 2024 has spilled over into 2025 despite concerns over mortgage rates drifting higher and some softening in consumer confidence over the economic outlook.
“Buyer demand is 13% higher than a year ago, with 10% more homes for sale and 12% more sales agreed.
“While there is speculation that demand may cool after Stamp Duty costs rise from April 2025, we find that there is an increased appetite amongst consumers to move home in the next 2 years.”
RICS
“Affordability is still a challenge for many would-be buyers, but the market's resilience is noteworthy.
“There’s strong demand for new mortgages and growth in lending.
“With a Stamp Duty increase looming, some of this demand may have come from first-time buyers eager to complete transactions before the end of March.