House prices in the UK rose by an average of 3.7 per cent to £269,000 as of June 2025, with an annual growth rate rising from 2.7 per cent in the 12 months to May 2025.
These figures come from the latest Office for Statistics (ONS) UK House Price Index, which measures house price inflation.
In the country, ONS data also showed that average house prices in England rose to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales and £192,000 (5.9%) in Scotland in 12 months in June 2025.
Commenting on the latest figures, Thomas Lambert, a financial planner at Quilter, said: “The title number (£269,000) faces a market that is still struggling with affordability. Mortgage rates have been lowered from high, but the typical solution is still around 4%, but makes monthly payments far exceed the level purchased by buyers in the 2010s.
“The inflation printing this morning was outlined again, which made the road to lowering interest rates longer and strengthened affordability tightening. On top of that, housing supply remains thin, which keeps buyers’ choices limited and keep prices sticky.
Lambert noted that policy noise is adding further uncertainty. Reports this week show that the Treasury is considering taxing major homes above high thresholds or proposing new taxes on expensive homes.
“If these rumors do come true in the fall budget, the deal could catch all over the winter because sellers think sitting in their hands, hoping another government can reverse these changes. This will risk a higher supply range, and paradoxically, it can raise prices, intensify competition, and make first-time buyers more complicated by strengthening competition.”
In the market, Jason Tebb said the market continues to prove resilience, lowering interest rates five times over the past year.
“These cuts have boosted future recommendations, boosted buyers and sellers’ confidence, increased market activity and benefited the broader economy. However, as inflation rose again to 3.8% in July, for a year and a half, this could convince banks to pause the button now to reduce further.”
According to the latest HPI data, real estate prices continue a modest but upward trajectory, according to Shawbrook’s retail mortgage business director Steve Griffiths.
“While this is roughly in line with the seasonal trend, a drop in interest rates to 4.25% may help boost home buyers’ confidence in the market and offset a sharp drop in post-event post-tax deadlines.
He added: “Following H2, there are positive signs that the market will continue to be resilient, especially in the face of broader economic problems. Interest rates are now at their lowest point in two years and mortgage lenders are lowering their interest rates to follow suit.”
Jeremy Leaf, former RICS residential chairman and real estate agent, said there is another housing market data that confirms the resilience of buyers and sellers and is determined to keep the deal alive and work hard to negotiate prices.
“This confidence is supported by rising wages and ease of burden stress, and while these numbers should not be overly dependent as they are somewhat outdated, the most comprehensive one is to include mortgage and cash transactions.”
But, he added, the looming, almost inevitable tax rise, concerns about higher-than-expected inflation are increasingly likely to limit the depth and frequency of future interest rate reductions, which will further boost activity.
