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UK Property Market Statistics 2025

Authored by:

Simon Beasor, BSc, MA – Expert Research & Analysis

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All of the latest property market stats & figures for 2025

The UK property market is constantly changing. Prices rise and fall, demand surges and drops back, trends come and go. It’s influenced by the UK economy, the global economy and sometimes by unique events that no one predicted, such as the COVID pandemic or the catastrophic budget of Liz Truss.

In this article, we’ll take a snapshot of the UK housing market at the start of 2025, looking at current property prices and trends, the long-term outlook and alternatives to purchasing property such as the rental market.

Property Market Key Statistics In 2025

The UK housing market continues to improve as we get further away from the strange effects of the pandemic.

  • According to Government figures, there were 90,430 residential property transactions in February 2025. (UK monthly property transactions commentary, March 2025)
  • The Bank of England held interest rates at 4.5% in March, having cut the rate by 0.25 percentage points in February. The rate had been at a 16-year high of 5.25% last year having risen steadily from historic lows since early 2022. Further cuts are expected later in the year. (Bank of England March 2025)

The average house price and annual house price growth rates vary according to different sources and methodologies:

  • According to Zoopla, the average UK house price was £267,500 in February 2025.
  • Nationwide states the average house price at £270,493
  • Halifax has the average house price at £298,602 
  • Zoopla has the average price growth at +2.9%
  • Nationwide has price growth at +1.8% 
  • Halifax has the rise at +3.9%.

Sources: (Zoopla House Price Index: March 2025, Nationwide House Price Index Feb 2025, Halifax House Price Index Feb 2025)

Stats on the UK property market as a whole in 2025

The UK property market remains largely positive, boosted in the first few months of 2025 by buyers trying to avoid the increase in Stamp Duty due in April.

UK house price statistics

House prices continued to grow steadily, although the larges rises seen post-pandemic have settled down to a more steady rate of increase.

  • Zoopla figures show the average property price was £267,500 in February 2025, a rise of £4,720 over 12 months.
  • Nationwide states the average house price at £270,493, with an average annual price rise of +3.9%. Halifax has the average house price at £298,602 and the average price growth at +2.9%. The Office for National Statistics has the average UK house price at £291,000 for England, £210,000 for Wales and £187,000 for Scotland for the year to January 2025. (ONS Private rent and house prices , UK March 2025)
  • Zoopla states the average detached home cost £449,100, the average semi-detached was £274,100 and the average terraced house was £236,500. The average flat was £191,400
  • House prices are rising faster in the North than in the South, with average rises of +3.0% in Liverpool and just 0.6% in Cambridge and Southampton. 
  • According to Savills, the highest price growth in 2024 was in West Dunbartonshire, where prices rose +8.7% (Savills UK Housing Market Update – January 2025)
  • Zoopla predicts a property price rise of 2.5% by the end of year.

The private rental market in the UK

The rental market remains strong, with supply outstripping demand and keeping rental prices up. Around a third of UK households are in rented property.

  • According to Statista, there were 4.7 million households renting their homes in 2024 as property prices and increased mortgage interest rates forced many people out of the market. (Statista: Number of households occupied by private renters in England from 2000 to 2024)
  • This equates to 35.7% of the population in rental accommodation
  • The average monthly rent for new tenancies ranged from £665 to £2,100 according to location. The average rent outside London is £1,095 rising to £2025 in the capital. 
  • Rents have risen by 25% since 2015, and 12.5% since the pandemic.
  • According to the Office for National Statistics, average UK monthly rents rose by 8.1% to £1,326 in the year to February 2025.
  • Rent inflation was highest in London, with prices rising 9.9% over 12 months. The lowest rent rises were in Yorkshire, averaging 4.8%.
  • RICS Residential Market Survey shows rental demand holding steady, with new buyer enquiries in January the same as December and new agreements up +3%. New instructions rose 25%, representing the seventh straight month of growth. (RICS Residential Market Survey January 2025)

Property cash buying statistics

Cash remains king for property buyers, attracting big discounts from sellers looking for the certainty of a cash sale without delays or uncertainties of mortgage applications.

  • According to Reallymoving.com 19.3% of homes were bought for cash, without a mortgage) in February 2025.
  • This is around the same as February 2024 (19.9%), but significantly lower than February 2023 (26.3%).
  • According to a study quoted in Financial Reporter, based on Land Registry records, cash buyers paid on average £28,189 less than mortgage-dependent buyers in September 2024, a discount of 9.3%.
  • In North West England, cash buyers enjoy the largest discount at around 13.4% or     £31,827
  • Cash buyers in London paid around £15,344 more for property on average in September 2024.

The UK property market has seen a surge of activity in the first few months of 2025, as buyers looked to avoid the increase in Stamp Duty Land Tax that was due in early April. These changes lowered the threshold from £250,000 to £125,000, adding around £2,500 to the cost of an average property purchase. 

It is expected that there will be a lull in the market following the rise.

Many buyers are also holding out for reductions in the Bank of England base rate, which currently stands at 4.5% (March 2025). Though further cuts are expected in August and November 2025, it is widely anticipated that the rate will stabilise at around 4% and that this will become the ‘new normal’ after several years of near-zero interest rates. The Times quotes that some experts, including Morgan Stanley, predict rates will drop as low as 3.5% by the end of the year.

Most experts predict modest rises in property values in 2025, with Moneyweek reporting that Knight Frank is forecasting a 2.5% increase, while Savills are predicting a rise as high as 4%.

Cash offer calculator

Expert Insight from Kelvin Elliott

Kelvin Elliott, founder and buying director of myhomebuyers.co.uk comments on the UK property market:

“The latest figures show that the UK property market is in a healthy state. However, it still takes a significant length of time to sell a property, even in a buoyant market. The increase in Stamp Duty will only slow the market down further as buying a home becomes yet more expensive, especially for first time buyers.

“Many buyers will also be holding back, hoping for further drops in the mortgage rate before they commit to buying a property. At the same time, as the figures show, cash buyers on the open market are expecting, and getting, significant discounts in exchange for an easier, faster purchase.

“All of this makes selling your home to a cash house buyer a more attractive proposition than many people think, with a fair price for a fast, fuss-free sale that takes away the uncertainties of the open market.”

To see what you could get for your home from a fast cash house buyer, click below:

Cash offer calculator

Conclusion – The long-term outlook of the UK property market

The UK property market has its ups and downs, and there will always be times of boom and bust, as well as significant regional variations. Prices rose sharply following the pandemic, but growth has slowed since then as interest rates have risen sharply, and in some areas, prices have fallen back a little in recent months in an adjustment.

However, as a general rule, property will always increase in value over time. Adjusted for inflation, the average house price has risen from £120,994 in 1975 to around two and a half times that today. This makes property a good investment in the long term, even if the returns will vary depending on the current market conditions.