In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in March 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.

In December 2024, the average house price in England was pricier than in any other country. This considerable disparity in average house prices is in no small part down to the country's capital city, where the average asking price was more than double that of the UK’s average. Even in London, for those who can afford a mortgage, the savings made through buying over renting can be beneficial. What drives house prices? Average house prices are affected by several factors, including economic growth, unemployment, and interest rates. Housing supply also plays a considerable role, with a shortage of supply leading to increased competition and an upward push in prices. Conversely, an excess of housing means prices fall to stimulate buyers. House prices still set to grow The housing market in the UK is expected to continue to grow in the next years. By 2029,.the annual number of housing transactions is set to reach *** million. With transactions on the rise, the average house price is also set to rise.

Graph and download economic data for Residential Property Prices for United Kingdom (QGBN628BIS) from Q2 1968 to Q1 2025 about United Kingdom, residential, HPI, housing, price index, indexes, and price.

According to the forecast, house prices in the UK prime property market are expected to increase by almost **** percent by 2029. Growth is expected to accelerate over the five-year period, with 2025 expecting the lowest increase and 2029, the highest.

Residential Property Prices in the United Kingdom increased 5.62 percent in March of 2025 over the same month in the previous year. This dataset includes a chart with historical data for the United Kingdom Residential Property Prices.

This statistic displays the average asking price of property for sale in the United Kingdom (UK) as of the fourth quarter 2019, by region. The average asking price of property in London amounted to approximately *** thousand British pounds. This was over *** thousand British pounds more than the average asking price of the South East of England that had the second highest price in the fourth quarter of 2019.

Median price paid for residential property in England and Wales, by property type and administrative geographies. Quarterly rolling annual data. Formerly HPSSA dataset 9

Housing Index in the United Kingdom increased to 514.30 points in July from 512.40 points in June of 2025. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

According to the forecast, the North West and Yorkshire & the Humber are the UK regions expected to see the highest overall growth in house prices over the five-year period between 2025 and 2029. Just behind are the North East and West Midlands. In London, house prices are expected to rise by **** percent.

The UK residential real estate market, valued at approximately £360.27 billion in 2025, is projected to experience robust growth, driven by several key factors. Strong population growth, particularly in urban centers, fuels consistent demand for housing, while low interest rates and government initiatives aimed at boosting homeownership further stimulate market activity. The market is segmented into apartments and condominiums, and landed houses and villas, with each segment exhibiting unique growth trajectories. Apartments and condominiums, particularly in London and other major cities, are expected to see higher demand due to affordability concerns and lifestyle preferences, while landed houses and villas continue to appeal to those seeking more space and privacy, particularly in suburban or rural areas. Competition among major developers such as Berkeley Group, Barratt Developments, and others influences pricing and construction activity. While challenges exist, such as fluctuating economic conditions and rising construction costs, the overall outlook for the UK residential real estate market remains positive. The market's performance is also influenced by broader economic factors, such as inflation and employment rates, and is likely to see regional variations, with London and the South East generally commanding higher prices. The market's growth is expected to continue through 2033, with a compound annual growth rate (CAGR) of 5.75%. This growth will likely be influenced by factors such as evolving demographic trends (including increasing urbanization and family sizes), government policies impacting the housing market, and technological advancements impacting the construction and sales processes. International investment continues to play a significant role, especially in prime London properties. However, the market is susceptible to external shocks, such as changes in interest rates or economic downturns. Understanding these factors is crucial for investors and stakeholders operating within the UK residential real estate sector. Market analysis suggests continued demand for sustainable and energy-efficient housing, influencing the development of future projects. This comprehensive report provides an in-depth analysis of the UK residential real estate market, covering the period from 2019 to 2033. With a base year of 2025 and a forecast period spanning 2025-2033, this research offers invaluable insights for investors, developers, and industry professionals seeking to navigate this dynamic market. The report leverages extensive data analysis, covering key segments, emerging trends, and major players, to provide a clear understanding of market dynamics and future growth potential. High-search-volume keywords like UK property market, UK house prices, London property market, UK residential real estate investment, build-to-rent UK, multifamily UK, and UK housing market forecast are integrated throughout to ensure maximum online visibility. Recent developments include: May 2023: A UAE-based investment manager, Rasmala Investment Bank, has launched a USD 2bn ( €1.8bn) UK multifamily strategy for a five-year period to build a USD 2bn portfolio of UK residential properties. The strategy is focused on the UK market for multifamily properties through a Shariah-compliant investment vehicle, initially targeting the serviced apartment (SAP) and BTR (build-to-rent) subsectors within and around London. Seeded by Rasmala Group, the strategy is backed by an active investment pipeline for the next 12 – 18 months., November 2022: ValuStrat, a Middle East consulting company, increased its foothold in the UK by acquiring an interest in Capital Value Surveyors, a real estate advisory services company with offices in London. The UK continues to be one of the most established real estate markets worldwide and attracts foreign investors regularly. They are excited to expand their presence there to better serve all of their clients, both in the UK and the Middle East.. Key drivers for this market are: Demand for New Dwellings Units, Government Initiatives are driving the market. Potential restraints include: Supply Chain Disruptions, Lack of Skilled Labour. Notable trends are: Increasing in the United Kingdom House Prices.

Median price paid for residential property in England and Wales, by property type and Middle layer Super Output Area (MSOA). Quarterly rolling annual data. Formerly HPSSA dataset 2.

Median price paid for residential property in England and Wales by property type and electoral ward. Annual data.

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 February, nearly double the national average. However, the market dynamics are shifting, with London experiencing only a modest *** percent annual increase, while other cities like Belfast and Liverpool 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 become the biggest barrier to property purchases, with the majority of the respondents in a recent survey citing it as their main challenge. Moreover, a rising share of Brits have reported affordability as a challenge since 2021, 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.

This is the unadjusted median house priced for residential property sales (transactions) in the area for a 12 month period with April in the middle (year-ending September). These figures have been produced by the ONS (Office for National Statistics) using the Land Registry (LR) Price Paid data on residential dwelling transactions.

The LR Price Paid data are comprehensive in that they capture changes of ownership for individual residential properties which have sold for full market value and covers both cash sales and those involving a mortgage.

The median is the value determined by putting all the house sales for a given year, area and type in order of price and then selecting the price of the house sale which falls in the middle. The median is less susceptible to distortion by the presence of extreme values than is the mean. It is the most appropriate average to use because it best takes account of the skewed distribution of house prices.

Note that a transaction occurs when a change of freeholder or leaseholder takes place regardless of the amount of money involved and a property can transact more than once in the time period.

The LR records the actual price for which the property changed hands. This will usually be an accurate reflection of the market value for the individual property, but it is not always the case. In order to generate statistics that more accurately reflect market values, the LR has excluded records of houses that were not sold at market value from the dataset. The remaining data are considered a good reflection of market values at the time of the transaction. For full details of exclusions and more information on the methodology used to produce these statistics please see http://www.ons.gov.uk/peoplepopulationandcommunity/housing/qmis/housepricestatisticsforsmallareasqmi

The LR Price Paid data are not adjusted to reflect the mix of houses in a given area. Fluctuations in the types of house that are sold in that area can cause differences between the median transactional value of houses and the overall market value of houses. Therefore these statistics differ to the new UK House Price Index (HPI) which reports mix-adjusted average house prices and house price indices.

If, for a given year, for house type and area there were fewer than 5 sales records in the LR Price Paid data, the house price statistics are not reported. Data is Powered by LG Inform Plus and automatically checked for new data on the 3rd of each month.

The UK house price index (UK HPI) represents changes in the value of UK residential properties (i.e., detached houses, semi-detached houses, terraced houses, flats and maisonettes) and indicates trends in the UK housing market. The UK HPI applies a hedonic regression model that utilises the various sources of data on property price (e.g., HM Land Registry's Price Paid dataset) to allow for a true comparison of UK property prices in each period. The data is sourced from the Office for National Statistics (ONS) and HM Land Registry, using house sales data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. Forecast data is estimated by IBISWorld, with reference to Office for Budget Responsibility (OBR) forecasts submitted in its 'Economic and fiscal outlook – March 2022' publication. The figures are presented with a base month in 2015 (i.e., January 2015 = 100) and are averages of the UK HPI over each financial year (i.e., April-March).

Average House Prices in the United Kingdom increased to 298237 GBP in July from 297157 GBP in June of 2025. This dataset includes a chart with historical data for the United Kingdom Average House Prices.

Key information about UK Nominal Residential Property Price Index

• United Kingdom Nominal Residential Property Price Index was reported at 170.677 2010=100 in Sep 2024.
• This records an increase from the previous number of 165.305 2010=100 for Jun 2024.
• UK Nominal Residential Property Price Index data is updated quarterly, averaging 35.645 2010=100 from Jun 1968 to Sep 2024, with 226 observations.
• The data reached an all-time high of 170.677 2010=100 in Sep 2024 and a record low of 2.175 2010=100 in Jun 1968.
• UK Nominal Residential Property Price Index data remains active status in CEIC and is reported by Bank for International Settlements.
• The data is categorized under World Trend Plus’s Association: Property Sector – Table RK.BIS.RPPI: Selected Nominal Residential Property Price Index: 2010=100: Quarterly.

Key information about United Kingdom Real Residential Property Price Index Growth

• United Kingdom Real Residential Property Price Index Growth was reported at 0.288 % in Sep 2024.
• This records an increase from the previous number of -1.265 % for Jun 2024.
• UK Real Residential Property Price Index Growth data is updated quarterly, averaging 2.022 % from Jun 1969 to Sep 2024, with 222 observations.
• The data reached an all-time high of 40.054 % in Mar 1973 and a record low of -17.899 % in Mar 2009.
• UK Real Residential Property Price Index Growth data remains active status in CEIC and is reported by Bank for International Settlements.
• The data is categorized under World Trend Plus’s Association: Property Sector – Table RK.BIS.RPPI: Selected Real Residential Property Price Index: 2010=100: Quarterly: YoY %.

House Price Index YoY in the United Kingdom decreased to 2.40 percent in July from 2.70 percent in June of 2025. This dataset includes a chart with historical data for the United Kingdom House Price Index YoY.