UK House Price Predictions 2025: Find Out What the Latest Data Says
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The UK property market begins 2025 with a positive outlook, bolstered by strengthening economic conditions and favourable market indicators. After a few years of problems from rising interest rates and inflation, the UK property market shows signs of resilience.
With interest rates falling, wages rising, and regional growth disparities narrowing, 2025 is shaping up to be pivotal for homeowners and investors.
Key drivers include the Bank of England’s gradual interest rate cuts, which are expected to stabilise mortgage rates, making homeownership more accessible.


UK house price growth (Nov 2024)
At the same time, wages have increased by 5.2% over the past year, which is higher than the rate at which house prices have risen (3.3%–4.7%). This wage growth gives people more purchasing power, making it easier to save for a deposit and afford repayments.
Regional differences also matter; northern regions like the North West and North East are projected to beat the South East in price rises. Understanding these patterns helps buyers and investors negotiate the always-changing UK property market.
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What’s Happening with UK House Prices in 2025?
In 2025, property experts predict a shift in house price trends, signaling a record number of opportunities for savvy investors. Although some home movers still face affordability challenges, a stable mortgage market and lowering fixed-rate mortgage rates are increasing market confidence. The UK house price forecasts for 2025 show a market gradually recovering from previous challenges.
UK House Price Growth
In 2024, the average house price in the UK went up to £290,000, which is a 3.3% rise, according to HM Land Registry. Nationwide said there was a better than expected rise of 4.7%. This steady rise shows that the property market is strong, even with high prices and mortgage rates.
Regional Property Market Leaders
Some important areas are leading this comeback. Recent reports show that Northern Ireland had a 6.2% increase, followed by Scotland at 4.7%, the North East at 5.9%, and the North West also at 5.9%. The North West is appealing to investors because it is affordable and has good investment potential.
North West Property Boom
In the North West, areas like Manchester, Liverpool, and Preston have shown robust growth, with Liverpool recording a 5.2% increase in average house prices in 2024. These cities benefit from strong rental yields, regeneration projects, and growing demand from both first-time buyers and investors.
London experienced a tiny decline of 0.1%, showing that people are finding it harder to afford homes and are being careful about buying. Low mortgage rates, continuous demand, and strong company prospects support the local comeback. The UK market is expanding, hence till 2025 there are considerable possibilities for wise investments. Since house values are rising and selling at reasonable rates is simpler, buyers are adjusting their prices to match the growing demand. House prices are expected to keep rising. Investors who take action now can benefit from this trend.
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Are UK House Prices Heading Up or Down in 2025?
As industry professionals, we’ve been analysing the mixed predictions for UK house price growth in 2025, and there’s reason to be both optimistic and cautious.
Zoopla predicts, we’re likely to see a modest 2.5% rise in house prices this year. On the more optimistic end, Savills forecasts a 4% average increase, with northern regions like the North West, North East, and Yorkshire expected to lead with a 5% rise.
The disparities between regions underline a familiar trend: affordability plays a huge role. London, where the average house price is more than £511,000, could experience slower growth as stretched affordability hampers buyer activity.
In contrast, areas with more easily accessible property values – such as the northern parts of the United Kingdom – continue to attract interest from investors as well as first-time buyers.
Local buyer demand and affordability determine mostly whether house prices are rising or declining.
But, yes, if we see overall, asking house prices are rising in 2025.


Market Trends in 2025
The UK property market shows strong momentum, with a 1.7% price increase in January 2025 and an 11% rise in new listings. In this competitive market, sellers need to realistically price their properties and make them more attractive to attract buyers and get good deals.
Price Strategy Matters
In this competitive environment, sellers must fairly price their homes and make them more appealing to draw in purchasers and secure acceptable offers.
Enhance Your Property's Appeal
The properties are much more appealing because of their outstanding features and flawless presentation. The main selling factors should be staged and improved by sellers.

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What’s Driving UK House Price Growth in 2025?
Several key factors are propelling house price growth this year, despite lingering challenges like affordability and inflation. Let’s break them down:
Falling Interest Rates
The Bank of England has lowered interest rates in 2024 to 4.75%, which is starting to reduce borrowing costs. More cuts—three or four in 2025—might reduce rates to about 4%. Moneyfacts reported that the average five-year fixed mortgage rate is 5.25%, and the average two-year fixed rate is 5.48%. Although lower interest rates are making it easier to afford mortgages, high inflation in the services sector (5%) may stop many people from getting mortgages with rates below 4% for the time being. Slowly lowering rates is expected to improve buyer trust over time.
Strong Wage Growth
An ONS analysis shows that the UK is seeing robust pay rise—5.2% in October 2024. Especially for first-time buyers and investors, this exceeds the present housing price increase and is absolutely essential for addressing affordability issues. More potential investors joining the UK home market with more confidence in 2025 as earnings climb faster than property prices.
Limited Housing Supply
There is a housing shortages in UK property market. Only 28% of people own their houses entirely, which limits sales and the total count of residences for offer. The government wants to create 1.5 million more homes by 2029, but not enough are being created to satisfy demand. Particularly in popular areas like the North West and Midlands, this mismatch maintains high prices.
How Have UK House Prices Changed Over the Past Year?
Against forecasts of stagnation, the UK housing market recovered in 2024.
As we already indicated, HM Land Registry reports that the average UK property price has increased by 3.3% to £290,000 – an increase of £10,000 compared to 2023. With prices growing 4.7%, nationwide reported even more robust increase.
Regional trends highlighted stark contrasts. As we mentioned above, the North West, North East, and Scotland outpaced the rest of the country, with annual growth rates of 5.9%, 5.9%, and 4.7%, respectively. Meanwhile, London saw a rare 0.1% decline, reflecting stretched affordability and reduced buyer confidence.
Zoopla noted that half of the UK’s homes increased in value in 2024, averaging a £7,600 gain, while a third saw price declines of 1% or more.
This uneven recovery underscores the importance of assessing regional property values to make more informed decisions in 2025.
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