House prices vary widely in the United Kingdom (UK), but housing in certain cities and counties is substantially pricier than in others. Surrey, for example, concentrated four of the most expensive towns to buy a home, including Virginia Water, Cobham, and Esher. With an average house price of over *********** British pounds as of June 2024, housing in these towns cost roughly **** times the national average. How did house prices change since the COVID-19 pandemic? Since the start of the coronavirus (COVID-19) pandemic, demand for housing has been especially high, causing house prices to soar. Among major UK cities, the house price increase was most prominent in Belfast, where it rose by *** percent in 2024. According to the UK House Price Index, the average annual house price increase on a national level was even higher. How long does it take to sell a house? With the demand for housing going strong and inventory running low, aspiring homeowners need to act faster than ever when making an offer on a home. The average number of days on market has continued shortening since the start of 2021 and was a little over a month as of October 2021. Surprisingly, selling a property took the longest in the UK’s most competitive market - London.

The UK housing market continued to show significant regional variations in 2025, with London maintaining its position as the most expensive city for homebuyers. The average house price in the capital stood at ******* British pounds in November, double the national average. However, the market dynamics are shifting, with London experiencing a *** percent annual decrease, while other cities like Liverpool, Glasgow, and Belfast saw more substantial growth of over **** percent respectively. Affordability challenges and market slowdown Despite the continued price growth in many cities, the UK housing market is facing headwinds. The affordability of mortgage repayments has been the biggest barrier to property purchases, with the majority of the respondents in a survey citing it as their main challenge until recently. A rising share of Brits reported affordability as a challenge between 2021 and 2023, reflecting the impact of rising house prices and higher mortgage rates. The market slowdown is evident in the declining housing transaction volumes, which have plummeted since 2021. European context The stark price differences are mirrored in the broader European context. While London boasts some of the highest property prices among European cities, a comparison of the average transaction price for new homes in different European countries shows a different picture. In 2023, the highest prices were found in Austria, Germany, and France.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in November 2025, prices reached a new peak, with the average home costing ******* British pounds. This figure refers to all property types, including detached, semi-detached, terraced houses, and flats and maisonettes. Compared to other European countries, the UK had some of the highest house prices. How have UK house prices increased over the last 10 years? Property prices have risen dramatically over the past decade. According to the UK house price index, the average house price has grown by over ** percent since 2015. This price development has led to the gap between the cost of buying and renting a property to close. In 2023, buying a three-bedroom house in the UK was no longer more affordable than renting one. Consequently, Brits have become more likely to rent longer and push off making a house purchase until they have saved up enough for a down payment and achieved the financial stability required to make the step. What caused the recent fluctuations in house prices? House prices are affected by multiple factors, such as mortgage rates, supply, and demand on the market. For nearly a decade, the UK experienced uninterrupted house price growth as a result of strong demand and a chronic undersupply. Homebuyers who purchased a property at the peak of the housing boom in July 2022 paid ** percent more compared to what they would have paid a year before. Additionally, 2022 saw the most dramatic increase in mortgage rates in recent history. Between December 2021 and December 2022, the **-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

House prices in the UK rose dramatically during the coronavirus pandemic, with growth slowing down in 2022 and turning negative in 2023. The year-on-year annual house price change peaked at 14 percent in July 2022. In December 2025, house prices increased by 2.4 percent. As of mid-2025, the average house price was over 272,000 British pounds. Correction in housing prices: a European phenomenon The trend of a growing residential real estate market was not exclusive to the UK during the pandemic. Likewise, many European countries experienced falling prices in 2023. When comparing residential property RHPI (price index in real terms, e.g. corrected for inflation), countries such as Germany, France, Italy, and Spain also saw prices decline. Sweden, one of the countries with the fastest growing residential markets, saw one of the largest declines in prices. How has demand for UK housing changed since the outbreak of the coronavirus? The easing of the lockdown was followed by a dramatic increase in home sales. In November 2020, the number of mortgage approvals reached an all-time high of over 107,000. One of the reasons for the housing boom were the low mortgage rates, allowing home buyers to take out a loan with an interest rate as low as 2.5 percent. That changed as the Bank of England started to raise the base lending rate, resulting in higher borrowing costs and a decline in homebuyer sentiment.

Key information about House Prices Growth

• UK house prices grew 0.9% YoY in Feb 2026, following an increase of 0.9% YoY in the previous month.
• YoY growth data is updated monthly, available from Jan 1992 to Feb 2026, with an average growth rate of -16.6%.
• House price data reached an all-time high of 26.4% in Jan 2003 and a record low of -17.5% in Feb 2009.

Scatter plot visualization where the x-axis represents the average property price and the y-axis represents the average price percentage change for UK regions highlighing London region.

Historical data (2002-2024) showing the ratio of average house prices to median earnings in London region compared to neighboring regions.

Portugal, Canada, and the Netherlands were the countries with the highest house price to income ratio in 2024. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 114.8 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

Housing Index in the United Kingdom decreased to 516.80 points in March from 519.10 points in February of 2026. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Average House Prices in the United Kingdom decreased to 299677 GBP in March from 301051 GBP in February of 2026. This dataset includes a chart with historical data for the United Kingdom Average House Prices.

Ranking of UK regions by average house price highligning South East region.

Historical data (2002-2024) showing the ratio of average house prices to median earnings in North West region compared to neighboring regions.

Annual average house prices in London region compared to nearby regions.

House Price Index YoY in the United Kingdom decreased to 0.80 percent in March from 1.20 percent in February of 2026. This dataset includes a chart with historical data for the United Kingdom House Price Index YoY.

House price index in the United Kingdom, September, 2025 The most recent value is 172.57 index points as of Q3 2025, an increase compared to the previous value of 168.74 index points. Historically, the average for the United Kingdom from Q1 1990 to Q3 2025 is 91.29 index points. The minimum of 31.77 index points was recorded in Q4 1992, while the maximum of 172.57 index points was reached in Q3 2025. | TheGlobalEconomy.com

Key information about House Prices Growth

• EU house prices grew 5.5% YoY in Sep 2025, following an increase of 5.5% YoY in the previous quarter.
• YoY growth data is updated quarterly, available from Mar 2006 to Sep 2025, with an average growth rate of 3.2%.
• House price data reached an all-time high of 11.2% in Dec 2006 and a record low of -4.8% in Jun 2009.

Affordability ratios calculated by dividing house prices by gross annual residence-based earnings. Based on the median and lower quartiles of both house prices and earnings in England and Wales.

Annual average house prices in North West region compared to nearby regions.