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 one million British pounds as of June 2024, housing in these towns cost roughly four 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 5.5 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.

Renting an office space in the UK was the most expensive in London West End in 2025. In the first quarter of the year, the square foot cost of a prime office space cost 170 British pounds. Conversely, Belfast was the most affordable of the 18 markets ranked, at 26 British pounds per square foot.

To obtain a mortgage, first-time homebuyers in the UK need to save a deposit amounting to about 20 percent of the property purchase price. The higher the property value and the loan amount, the higher the deposit. In 2024, the average first-time buyer deposit in the UK was about 61,090 British pounds, but in the most expensive region, Greater London, the deposit amount was more than double. The share of the deposit was also much higher than in other regions in the UK. How has the house price for first-time buyers changed over time? Housing bought by first-time buyers has become increasingly pricier since 2000, making it harder for renters to get on the property ladder. By 2024, the average house price had tripled. The price also varied in different regions, with the North East being the least expensive and Greater London – the most expensive. Which are the most affordable areas for first-time buyers? While housing in certain areas can be pricy, this does not necessarily make it unaffordable, as the standard of living may also be higher. In 2020, the most affordable towns for first-time buyers were found in the North West region (Burnley) and Scotland (East Ayshire, North Ayshire, Inverclyde, West Dunbartonshire).

According to a mid-2024 index, *********** was the most expensive country to live in Europe, with an index score of ****.******** followed in the second place with around ** points less.

The borough with the highest property prices in London, Kensington and Chelsea, had an average price for a flat that was about ******* British pounds higher than the London average. London is the most populous metropolitan area in the UK, and living in it comes with a price tag. Unsurprisingly, the most expensive boroughs in terms of real estate prices are located in the heart of the metropolis: Kensington and Chelsea, the City of Westminster, and the City of London. In Kensington and Chelsea, home to several museums such as the Natural History Museum, the Victoria and Albert Museum, and the Science Museum, as well as galleries and theaters, the average price of apartments was over a million British pounds. How have residential property prices developed in recent years? The average house price in England declined slightly in 2023 after increasing year-on-year since 2008. The housing market in Wales also experienced a mild correction, but prices in Scotland and Northern Ireland continued to grow. Since 2015, the base year of the UK House Price Index, house prices in London have risen by over ** percent. In London, the cost of a flat decreased by *** percent year-on-year as of June 2024. However, some of the most expensive boroughs recorded a decline of over ** percent. Are residential property prices in London expected to grow in the future? Despite property prices declining in 2023, the market is forecast to continue to grow in the next five years, according to a March 2023 forecast. Some of the reasons for this are the robust demand for housing, the chronic shortage of residential properties and the anticipated decline in mortgage interest rates.

London remained the most expensive city for hotel accommodations in the United Kingdom, with an average nightly rate of *** British pounds in 2024. This figure stood in stark contrast to Milton Keynes, where travelers found rooms for less than half that price at ** British pounds per night. How expensive is accommodation in the United Kingdom? While London was highest on the list for hotel room prices, it did not command the highest average nightly Airbnb rates in the United Kingdom. Edinburgh topped the list with an average price of *** British pounds per night, significantly higher than London's *** British pounds. Interestingly, even smaller UK cities like St Andrews showed competitive nightly hotel rates among selected small cities in the United Kingdom, reaching *** British pounds per night in April 2024. Occupancy rates and accommodation preferences Despite high prices in some areas, the UK’s hotel industry in the country has thrived in recent years. In May 2024, the monthly hotel occupancy rate in the United Kingdom reached ** percent, surpassing levels seen in the previous four years. Edinburgh, the second most expensive city for hotels, saw ** percent of its visitors choosing hotels, motels, or inns as their preferred accommodation type in Edinburgh in 2023. The Scottish capital's popularity was further evidenced by comparing the annual average room occupancy rate of hotels in Scotland, with its region's nearly ** percent in 2024, outperforming even Greater Glasgow's robust ** percent

The average transaction price of new housing in Europe was the highest in Norway, whereas existing homes were the most expensive in Austria. Since there is no central body that collects and tracks transaction activity or house prices across the whole continent or the European Union, not all countries are included. To compile the ranking, the source weighed the transaction prices of residential properties in the most important cities in each country based on data from their national offices. For example, in Germany, the cities included were Munich, Hamburg, Frankfurt, and Berlin. House prices have been soaring, with Sweden topping the ranking Considering the RHPI of houses in Europe (the price index in real terms, which measures price changes of single-family properties adjusted for the impact of inflation), however, the picture changes. Sweden, Luxembourg and Norway top this ranking, meaning residential property prices have surged the most in these countries. Real values were calculated using the so-called Personal Consumption Expenditure Deflator (PCE), This PCE uses both consumer prices as well as consumer expenditures, like medical and health care expenses paid by employers. It is meant to show how expensive housing is compared to the way of living in a country. Home ownership highest in Eastern Europe The home ownership rate in Europe varied from country to country. In 2020, roughly half of all homes in Germany were owner-occupied whereas home ownership was at nearly ** percent in Romania or around ** percent in Slovakia and Lithuania. These numbers were considerably higher than in France or Italy, where homeowners made up ** percent and ** percent of their respective populations.For more information on the topic of property in Europe, visit the following pages as a starting point for your research: real estate investments in Europe and residential real estate in Europe.

The capital city of England, London has a population of approximately nine million residents and by 2041, the population of London is estimated to exceed 10 million individuals. To house them, the sprawling city has a stock of approximately 3.8 million dwellings. Annually, there are between 15,000 and 25,000 housing construction completions. Average house prices The average house price for a first-time buyer in London was over 492,000 British pounds in 2023, more than any other city in the UK. Overall, it was more affordable to buy a newly built property than an existing one, a price gap of over 100,000 British pounds. Average rental costs Unsurprisingly, London also topped the ranking as the most expensive region for renters. The average cost of rent exceeding 2,000 British pounds in 2024. Certain Boroughs in London will set back the average renter more than others. Westminster, Lambeth, and Hammersmith, Fulham, Kensington and Chelsea were the most expensive boroughs based on the average monthly rent.

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2023, the West End had average rents per square foot of *** British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market. Prime yields For commercial real estate investors, prime yields in London averaged **** percent in 2023. As compared to the rest of the United Kingdom, yields for prime office space in London were notably lower. Commercial investments Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.

In the South of England, rents for office space fluctuate depending on its location. This was especially present for areas surrounding London. For companies looking for more affordable rents, some choose to rent Grade B office properties. For specific areas of Southern England, Grade B rents are often more than ten British pounds per square foot cheaper than Grade A properties. In 2019, the cost of grade B office property was the most expensive in Bristol, in the South West of England at 30 British pounds per square foot. The cheapest average office rents in the South of England could be found in Norwich and Peterborough.

Compared to London, even the most expensive office rents for Grade A and B real estate were far less than the top of London. In 2019, the most expensive office rents were found in the West End of London.

Portugal, Canada, and the United States 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 116.2 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, the 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.

East Dunbartonshire, the city of Edinburgh, East Loathian and East Renfrewshire were the most xpensive regions for residential property in Scotland as of February 2025. The average house price in those regions were over 300,000 British pounds. In comparison, the average house price in Scotland was almost two times lower. Which are the most expensive streets to live in Scotland? With the average house price valued at approximately 3 million British pounds, Queen's Crescent, Auchterarder PH3 was the most expensive street for residential real estate in Scotland in 2024. This was almost twice higher than in the second-priciest street, Ann street, Edinburgh EH4. Compared to other regions in the UK, Scotland is affordable Though 3.6 million British pounds is an impressive figure, not all housing in Scotland falls in this price bracket. In fact, with an average house price of about 170,000 British pounds, Scotland is the third most affordable region for first-time home buyers. Furthermore, it has the second lowest rent to income ratio in the UK.

The price of prime office space in London differs significantly based on location. More central areas, including the West End, Marylebone and Knightsbridge, tend to have prime rents more than double the cost of areas on the outskirts. London office rents - most expensive in Europe When placing London alongside other major cities in Europe, the West End area of London had annual prime rents over 800 euros per year higher than Paris. In the United Kingdom (UK), average rental costs in the capital fair outweigh those of other areas. Outside of London, the major cities saw prime office rents ranging between 26 British pounds per square foot and 39 British pounds per square foot. Prime Yields Prime yields assess the return on investment expected for commercial real estate. In 2023, prime yields ifor office real estate stood between 3.75 and 7.5 percent. During the same year, office prime yields in several other areas in Europe saw far greater returns on investment.

As of 2022, Israel had the highest price level index among listed countries, amounting to 138, with 100 being the average of OECD countries. Switzerland and Iceland followed on the places behind. On the other hand, Turkey and India had the lowest price levels compared to the OECD average. This price index shows differences in price levels in different countries. Another very popular index indicating the value of money is the Big Mac index, showing how much a Big Mac costs in different countries. This list was also topped by Switzerland in 2023.