Rising house prices ‘a sign of maturity’ amid ‘robust demand’

House price data from the Office for National Statistics (ONS) shows a rise in annual house price inflation following an April slow-down, with an increase of 3.9% in the 12 months to May 2025 taking the average UK property price to £269,000.  

Prices were up in all regions: the average price in England was £290,000 in May 2025, up 3.4% from a year earlier and 3.1% higher than the 12 months to April. In Wales, the average price was £210,000 in May, up 5.1% from a year earlier and 4.5% higher than the 12 months to April 2025 (4.5%).

The average house price for Scotland was £192,000 in May 2025, up 6.4% from a year earlier (6.2% higher than the 12 months to April 2025), with Northern Ireland up 9.5% to £185,000 in Quarter 1 2025, up 9.5% from Quarter 1 2024.

Inflation remains highest in the North East at 6.3% (up from 6.2% in the 12 months to April) and lowest in the South West at 1.9% (up from 0.7% in April). London’s house price annual inflation rate was lower in May 2025 (2.2%) than in April 2025 (4.6%). 

“Lower, single digit house price inflation is positive for the market as there is just enough price growth to encourage sellers to list their homes and buyers to make offers on property without the fear that prices may fall or suddenly surge higher. We expect price inflation to remain low as there are the most homes for sale in seven years, averaging 37 per estate agent.”

Iain McKenzie, CEO of The Guild of Property Professionals, said the figures show a market finding a solid footing and signal a return to confidence-driven growth.

He commented:

“This performance isn’t happening in a vacuum. It’s being fuelled by aspects such as the declining mortgage rates, which is unlocking the pent-up demand that has been building for months. We are seeing this confidence translate directly into action on the ground. The sharp 20% jump in mortgage approvals between April and May and the fact that the number of sales being agreed is running at the fastest pace in four years are powerful forward-looking indicators. 

“However, this isn’t a return to a runaway market. We are now operating in a more balanced, mature environment. The 14% increase in the number of homes for sale has empowered buyers with greater choice. This has, in turn, tempered price growth and ensured the market remains sustainable. Buyers are rightly price-sensitive, and correctly priced homes are the ones securing the most interest.

“All eyes are now on the Bank of England. While the base rate was held steady at the last meeting, the signalling of a potential cut as early as August provides a significant psychological boost for the market. This prospect, combined with the current downward trend in mortgage rates, will only further stimulate activity in the second half of the year.

“For both buyers and sellers, this data paints a picture of a market defined by opportunity. For sellers, demand is robust and committed buyers are back. For buyers, increased choice and favourable mortgage conditions present a clear window to make a move. The key to success in this rebalanced landscape is accurate pricing and expert advice, ensuring a smooth and successful transaction for all.”

Nathan Emerson, CEO of Propertymark, said the rise in house prices is an indicator of growth and stability. However, he added, ‘there is still more work to do to boost Britain’s housing market and make homeownership a realistic aspiration for those looking to step onto the property ladder for the first time’.