UK Housing Market Update 2025: Are House Prices Really Rising?

As of April 2025, the average UK house price has climbed to £268,250, showing a modest rise of 1.6% (£4,330) over the past year. But is this growth evenly spread across all types of homes and regions? Let’s break down the real story behind these numbers and what it means for buyers and sellers.

Key House Price Trends in 2025

💡 Takeaway:

• Semi-detached and terraced homes are seeing the highest price increases.
• Flats have barely moved, indicating slower demand or more stable pricing.

Sales Rebound After Stamp Duty Relief Ended

After a short slowdown caused by the end of stamp duty relief and the Easter break, housing sales have picked up again. More homes are on the market, and buyers are returning, helped by better mortgage rates.

• Agreed sales are now growing at the fastest pace since 2021.
• 35 unsold homes per estate agent on average — a sign of growing supply.
• Sub-4% mortgage rates and relaxed affordability checks are pushing buyers to make offers.

💡 Takeaway:

• If you’re a seller, competitive pricing is key.
• Buyers have more options and slightly better mortgage deals.

Are Homes Selling Above Asking Price?

No — the average home is selling at 3% below the asking price, roughly £16,000 less. This trend has been steady for several months.

💡 Tip:

• Buyers: Don’t be afraid to negotiate.
• Sellers: Price your home smartly to avoid it sitting on the market.

Where Are House Prices Growing Fastest?

💥 Hot Markets (High Growth):

• North West England: +3%
• Scotland: +2.9%
• Northern Ireland: Above average
• Top Cities: Blackburn, Wigan, Barnsley, Bradford — over 5% increase

These areas are more affordable, and that’s attracting buyers. Strong job markets in northern cities are also helping boost home values.

Cool Markets (Slower Growth):

• South East: +0.5%
• South West: +0.9%
• London: Slight increase, but limited
• Cities like Aberdeen, Brighton, Bournemouth: Small declines or flat prices

💡 Takeaway:

• First-time buyers should consider the North or Midlands for better value.
• Southern cities remain expensive and are seeing slower growth due to affordability issues.

More Homes Available in the South

In 2025, there are more homes for sale in southern England, especially:

• South West: +21% more listings
• London: +17%
• South East: +15%

This gives buyers more choices and puts pressure on sellers to price competitively.

Meanwhile, the North and Scotland have fewer new listings, which is helping push prices higher there.

Outlook for the Rest of 2025

So, what can we expect from the UK housing market in the coming months?

📊 Forecast Highlights:

• 5% more home sales expected in 2025 than in 2024
• Price growth will remain modest but positive
• Mortgage competition will support demand
• Regional differences will continue — affordable areas will see more growth

Final Thoughts for Buyers and Sellers

For Buyers:

• Look beyond London. Affordable cities in the North and Midlands offer better deals.
• Don’t overpay — with many homes still selling under asking price, negotiation is your friend.
• Act fast in hot markets where homes are selling quickly.

For Sellers:

• Know your local market. High supply in your area? Price competitively.
• Northern cities? You might get strong offers if demand is up.
• Consider timing: The second half of 2025 could bring more motivated buyers.

Bonus Insight: Why This Matters

This year’s housing market is defined by a return to stability, but not without challenges. While mortgage conditions are improving, buyers are still price-sensitive. Areas that offer value, especially outside the South, are seeing the most momentum.

📌 Summary

For more updates, expert tips, and easy-to-understand guides about property trends, visit HousingMarketNews — your trusted source for UK housing news.