"The latest house price figures show that the market has continued to move forward, with uplifts in both monthly and annual growth demonstrating that there remains a good appetite for homeownership - even if it isn’t as insatiable as we’ve seen in previous years"
- Marc von Grundherr - Benham and Reeves
Average UK house price inflation slowed to 2.8% in the 12 months to July 2025, down from a revised 3.6% in June, according to provisional figures released this morning by the Office for National Statistics. The average price reached £270,000, £8,000 higher than a year earlier.
National and regional breakdown
House price growth varied across the UK during July, with average prices in England rising 2.7% to £292,000. Wales recorded a 2.0% increase to £209,000, Scotland saw a 3.3% rise to £192,000, and Northern Ireland’s average reached £185,000, up 5.5% in the year to Q2 2025.
On a non-seasonally adjusted basis, UK house prices rose 0.3% between June and July 2025, compared with 1.1% in the same period a year earlier. After seasonal adjustment, prices fell 0.7% over the month.
Across English regions, the North East recorded the highest annual growth at 7.9%, while London showed the lowest, with prices rising 0.7%.
The Royal Institution of Chartered Surveyors’ July 2025 UK Residential Market Survey noted that buyer demand and agreed sales slipped into negative territory, with house prices easing nationally.
Transaction volumes were firmer. HMRC reported that 96,000 residential properties worth £40,000 or more changed hands in July 2025 on a seasonally adjusted basis, 4.3% higher than a year earlier. Compared with June 2025, sales volumes increased 1.1%. On a non-seasonally adjusted basis, activity varied: up 6.2% in England, down 6.7% in Scotland, up 4.5% in Wales and down 4.7% in Northern Ireland.
Jean Jameson, chief sales officer at Foxtons, commented: “As expected, August brought a typical summer slowdown in new buyer activity; however, this is beginning to pick up now that buyers and sellers are back from summer holidays and schools have restarted. Buyer demand has also been boosted by improved mortgage lending with higher loan-to-income multiple products on offer, as well as the fact that mortgage rates are lower compared to this time last year. Nevertheless, there understandably remains some uncertainty ahead of the Autumn Budget. Overall, house prices have grown over the last 12 months, and where properties are priced pragmatically, they are still attracting interest and selling quickly.”
“The latest house price figures show that the market has continued to move forward, with uplifts in both monthly and annual growth demonstrating that there remains a good appetite for homeownership - even if it isn’t as insatiable as we’ve seen in previous years,” explained Marc von Grundherr, director of Benham and Reeves. “Whilst the London market continues to trail many other regions, it’s important to remember that even marginal percentage increases in the capital translate into far greater sums on the table for sellers. So whilst a more muted performance may come as cause for concern for the capital’s home sellers, this continued growth underlines London’s status as the nation’s most resilient property market.”
Jonathan Samuels, CEO of Octane Capital, observed: “The housing market is holding steady, with house prices remaining on an upward trajectory, albeit a less pronounced one than we’ve seen in recent years. Improvements to the mortgage landscape have been vital in driving this renewed momentum, with buyers benefiting from greater product availability and more flexible eligibility criteria. The expectation is that interest rates will be held tomorrow and whilst this won’t light the touch paper in terms of driving buyer activity, it will bring reassurance in the short term by providing ongoing certainty.”
“The market has continued to improve in July, with both the monthly and annual rates of house price growth strengthening,” said Verona Frankish, CEO of Yopa. “This slow but steady performance has been a consistent theme throughout the year so far, and there’s little to suggest that this will change. That said, with the Autumn Budget on the horizon, we may see a momentary dip as the nation’s homebuyers hold off in the hope of a stamp duty shake-up. Whether such a reprieve will come to fruition remains to be seen, but either way, we could well see a spike in market activity following the Autumn Budget as the market gathers pace ahead of the Christmas break.”
Nathan Emerson, CEO of Propertymark, commented: “It is positive to see the housing market progressing forward in strength. As we move towards the autumn months, hopefully this momentum will continue. There continue to be two factors that may weigh heavily on consumers’ minds as they decide on what to do next regarding potentially approaching the buying and selling process."
"Any decision that the Bank of England makes tomorrow regarding base rates will determine whether people can realistically afford to relocate, and the uncertainty about potential further Stamp Duty restructuring may impact those moving house in England and Northern Ireland. Though we have clarification that the Budget will take place on 26 November 2025, this may cause people to delay their next house move in the meantime. For some, however, these factors will not impact their decisions due to the importance and urgency of their home move and may be able to more easily absorb any additional financial constraints to facilitate a home move.”
