Average UK house prices increased by 1.4% between May and June, up from an increase of 0.4% in the same period 12 months ago, according to the latest data from the ONS. Annual prices rose by 3.7% in the year to June 2025, up from a revised estimate of 2.7% in the 12 months to May 2025.
On a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 94,000, 1.3% higher than a year ago. Between May 2025 and June 2025, UK transactions increased by 13.4% on a seasonally adjusted basis.
The North East experienced the most significant monthly increase, up 3.4%, with the South West experiencing the largest monthly fall with a decrease of 0.5%. The average UK house price remains at £269,000.
Industry figures welcomed the news, with many saying the increase reflects increased confidence and steady demand.
Verona Frankish, CEO of Yopa:
“June’s figures reflect a market that is steadily building momentum, with both the rate of monthly and annual price growth improving against the backdrop of firmer buyer demand. At the same time, transaction levels have risen and mortgage approvals continue to climb, which points to growing confidence among both buyers and sellers and should help to further stimulate the market over the remainder of the year.”
Marc von Grundherr, director of Benham and Reeves:
“The latest figures show that house prices not only advanced on a monthly basis in June, but annual growth has also strengthened considerably compared to May. This highlights the underlying resilience of the UK property market, with buyers continuing to transact despite wider economic headwinds.”
Jonathan Samuels, CEO of Octane Capital:
“Today’s figures demonstrate that the housing market is in a healthier position than many expected, with prices climbing at both a monthly and annual level. A key driver behind this stability has been the mortgage sector, where approvals have now increased for two consecutive months and are fueling current momentum.
“This renewed activity in lending is helping to underpin demand and stimulate the wider market, providing the liquidity that buyers need to proceed with confidence. With the mortgage market continuing to support transactions, we expect to see further positive momentum in house prices over the coming months.”
Nathan Emerson, CEO of Propertymark:
“House price growth is widely regarded as being an important factor in boosting overall economic progress, so it is reassuring to see yet more headway as the housing market continues to see momentum.
“Despite the impact that Stamp Duty hikes and domestic and global factors have had on the economy, there are still convincing reasons to be optimistic about the property market in general. Total housing construction output has grown recently, and the UK Government and the devolved administrations are keen to meet their ambitious housing targets.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“Today’s ONS 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.
“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 benefiting from improved affordability. Crucially, when combined with strong earnings growth, the proportion of household income needed for mortgage payments is now almost back to its long-term average. This has been the missing piece of the puzzle, unlocking pent-up demand that has been waiting on the sidelines.”
However, chair of the Open Property Data Association Maria Harris warned that the price rises point to affordability pressures and called for decisive action from the industry:
“These rising prices reflect the ongoing affordability pressures households are facing, particularly in regions where growth is most pronounced such as the North East. While increased values may benefit existing homeowners, first-time buyers and lower-income households are likely being squeezed out further amid constrained supply and persistent uncertainty over housing policy delivery.
“We urge policymakers and industry stakeholders to respond to these insights with decisive action; expanding housing supply through an easier homebuying and selling process, and to support consumers in their ability to confidently enter into a property transaction. Only with a more holistic, cohesive, and smart data-informed approach can we hope to stabilise housing outcomes across the UK.”
