The latest UK House Price Index shows an annual increase of 2.8% in the 12 months to July (provisional estimate), down from 3.6% in the 12 months to June. The average monthly growth in July was 0.3%, with an average UK house price of £270,000.
In England the price was £292,000 (up 2.7%), with Wales at £209,000 (up 2%) and Scotland at £192,000 (up 3.3%). In Northern Ireland, the average house price increased to £185,000 in the year to Q2 (Apr to Jun, up 5.5%).
In the English regions, annual house price inflation was highest in the North East, which was up 7.9%. London saw the lowest rate, with an increase of 0.7%.
Industry reaction
Iain McKenzie, CEO of The Guild of Property Professionals:
“Today’s figures show that the housing market continues to demonstrate resilience, with average prices rising by 2.8% in the year to July. While this represents a slowdown from June’s growth, the combination of steady demand, improved mortgage approvals, and a rise in available stock has underpinned activity through the summer.
“The recent cut in the Bank of England’s base rate has offered welcome relief to borrowers, though inflationary pressures and speculation around potential housing tax reforms are tempering confidence in some areas. We are already seeing signs of greater price realism, with sellers increasingly adjusting to meet the market, which is helping transactions flow more smoothly.
“For buyers and sellers alike, the message is clear: well-priced homes are attracting attention, while those that overshoot tend to linger. With the window to complete before Christmas now narrowing, realistic pricing and proactive decision-making are more important than ever. Looking ahead, the Autumn Budget will be a key moment for sentiment, but the fundamentals suggest that the market will continue to move forward in a steady, sustainable way.”
Nathan Emerson, CEO of Propertymark:
“It is positive to see the housing market progressing forward in strength. As we move towards the autumn months, hopefully this momentum will continue.
“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.”
Marc von Grundherr, director of Benham and Reeves:
“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.
“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:
“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.”
Verona Frankish, CEO of Yopa:
“The market has continued to improve in July, with both monthly and annual rate of house price growth strengthening. 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.”
See the full report at https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentandhousepricesuk/september2025
