"The market isn’t uniform, as shown by Scotland’s impressive 5.9% growth, and buyers remain rightly price-sensitive."
- Iain McKenzie, CEO of The Guild of Property Professionals
On average, UK monthly private rents have increased by 5.9% to £1,343 in the last twelve months to July 2025.
In England, private rents annual inflation was highest in the North East (8.9%) and lowest in Yorkshire and The Humber (3.5%).
UK house prices increased by 3.7% to £269k to June 2025, representing an annual growth rate increase of 2.7% compared with the twelve months to May 2025.
In the twelve months to June 2025, average house prices have increased to £291k (3.3%) in England, £210k (2.6%) in Wales, and £192k (5.9%) in Scotland.
Jason Tebb, president of OnTheMarket, commented, “The market continues to demonstrate resilience, assisted by five interest rate reductions in the past year. These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy.
“However, with inflation rising again to 3.8% in July, its highest level in a year and a half, this may persuade the Bank to press the pause button for now with regard to further reductions.”
Iain McKenzie, CEO of The Guild of Property Professionals, agreed that today’s data “confirms the growing momentum in the market. The continued growth in annual house prices is a clear indicator that confidence is returning, and the market is moving into a phase of sustainable recovery.”
He said: “This isn’t a fleeting spike; it’s a recovery built on stabilising foundations. The key driver has been the continued improvement in mortgage rates. With some lenders now offering sub-4% deals and swap rates suggesting further falls are possible, buyers are benefitting from improved affordability.
“However, we’re not getting carried away. The market isn’t uniform, as shown by Scotland’s impressive 5.9% growth, and buyers remain rightly price-sensitive. The broader economic picture, with modest GDP growth and persistent inflationary pressures, will ensure the market stays grounded. This, combined with more properties coming to market, will keep a lid on price growth and ensure the recovery remains stable.”
Gareth Atkins, managing director of lettings at Foxtons, noted, “The London lettings market remained red hot in July. Despite a modest uptick in supply, applicant demand surged by 25% month-on-month, resulting in over 18 applicants per available property. This sustained pressure has driven rental prices upward in line with seasonal trends, and we expect this momentum to continue for the rest of the summer.”
“July brought a steady pace of activity, even as the summer holidays took some buyers and sellers out of the market. That said, well-priced homes, especially one or two-bed flats where supply is strongest, continued to attract interest. We’ve also seen an encouraging shift in sentiment following the recent base rate cut, which should support a pickup in activity,” added Jean Jameson, chief sales officer at Foxtons.
Karen Barrett, founder & CEO of Unbiased, highlighted that rising house prices is “closely linked to falling interest rates, which in turn are driving more people to seek expert mortgage advice. Whenever the Bank cuts the base rate, we see a clear uptick in demand for mortgage advice. Lower rates create opportunities for buyers and those looking to remortgage, but the market can be complex. That’s why working with a mortgage broker is so valuable.”
