Just as in many other countries, the housing market in the UK grew substantially during the coronavirus pandemic, fueled by robust demand and low borrowing costs. Nevertheless, high inflation and the increase in mortgage rates has led to house price growth slowing down. According to the forecast, 2024 is expected to see house prices decrease by three percent. Between 2024 and 2028, the average house price growth is projected at 2.7 percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded 150 index points, meaning that since 2015 which was the base year for the index, house prices had increased by 50 percent. In just two years, between 2020 and 2022, the index surged by 30 index points. As the market stood in December 2023, the average price for a home stood at approximately 284,691 British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next years. Growth is forecast to be stronger in 2024 and slow down in the period between 2025 and 2028. The rental market in London is expected to follow a similar trend, with Central London slightly outperforming Greater London.

Average house prices are affected by several factors: Economic growth, unemployment, interest rates and mortgage availability can all affect average prices. A shortage of supply means that the need for housing and, therefore, competitive market created will push up house prices, whereas an excess of housing means prices fall to stimulate buyers. Location, location, location In December 2023, the average house price in England was more expensive than in any other country. This huge 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. House prices still set to grow In 2024, the number of housing transactions in the UK is set to fall to 1.1 million. With the expected decline in transactions, the average house price is also set to stagnate across the UK.

Inflation-adjusted house prices in the United Kingdom (UK), continued to decline in the second quarter of 2023 - a trend that started in the fourth quarter of 2022. The nominal house price grew by 1.77 percent in the second quarter of 2023, but when adjusted for inflation, there was a decline of 6.15 percent.

According to the forecast, the UK regional prime property real estate market is to increase by almost 14 percent by 2028. In 2024, prime property prices are expected to fall by two percent. In the following four years, growth will recover.

The house price index (HPI) shows changes in the value of residential properties in England, Scotland, Wales, and Northern Ireland. With the HPI set at a base of 100 in January 2015, a value of over 100 would mark an increase in the average dwelling price. A value of under 100 points, on the other hand, would indicate that the average price has dropped. House price index in the UK The HPI fluctuated in 2023, after peaking in November 2022. In December 2023, the index stood at 149 index points, which was a slight decline from December 2022. This trend in the index, and therefore the value of UK residential properties, has also been observed by the Halifax house price index. Average house prices Average house prices are affected by several factors. Economic growth, unemployment, interest rates and mortgage availability can all drive them up or down. A shortage of supply means that the need for housing and the competitive market created will push house prices up. An excess of housing, on the other hand, means prices fall to stimulate buyers.

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 June 2024, house prices increased by 2.7 percent. According to the Nationwide Building Society, the average house price exceeded 265,000 British pounds in 2022. 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.

Summary of UK House Price Index (HPI) price statistics covering England, Scotland, Wales and Northern Ireland. Full UK HPI data is available on GOV.UK.

United Kingdom House Price: Qtr: First Time Buyer: Outer Met data was reported at 286,001.028 GBP in Jun 2018. This records a decrease from the previous number of 287,680.911 GBP for Mar 2018. United Kingdom House Price: Qtr: First Time Buyer: Outer Met data is updated quarterly, averaging 100,707.966 GBP from Mar 1983 (Median) to Jun 2018, with 142 observations. The data reached an all-time high of 287,680.911 GBP in Mar 2018 and a record low of 29,106.525 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: Outer Met data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s UK – Table UK.P001: House Price: Nationwide.

House Price Index: All Buyers: sa data was reported at 726.900 1983=100 in Nov 2018. This records a decrease from the previous number of 736.900 1983=100 for Oct 2018. House Price Index: All Buyers: sa data is updated monthly, averaging 278.600 1983=100 from Jan 1983 (Median) to Nov 2018, with 431 observations. The data reached an all-time high of 743.700 1983=100 in Jul 2018 and a record low of 96.100 1983=100 in Jan 1983. House Price Index: All Buyers: sa data remains active status in CEIC and is reported by Halifax and Bank of Scotland Plc. The data is categorized under Global Database’s United Kingdom – Table UK.EB006: House Price Index: HBOS Plc.

Since 2015, the gap between the cost of buying a home and renting has grown, with homeownership becoming increasingly less affordable. In the third quarter of 2024, the house price to rent ratio in the UK stood at 114.6. That meant that house price growth has outpaced rental growth by nearly 15 percent between 2015 and 2024. The UK's house price to rent ratio was slightly below the average Euro area ratio. House price to income ratio in the UK Another indicator for housing affordability is the house price to income ratio, which is calculated by dividing nominal house prices by the nominal disposable income per head. The ratio saw an overall increase between 2015, which was tthe base year, and 2022. After that, the index declined, but remained close to the average for the Euro area. Is it more affordable to rent or buy? There are many things to be considered when comparing buying to renting, such as the ability to qualify for a mortgage and whether prospective homebuyers have sufficient savings for a deposit. Generally, purchasing a home is more affordable than renting one. However, the average monthly savings first-time buyers can achieve have been on the decline. In East of England, where house prices have increased rapidly over the past few years, it was cheaper to rent than to buy in 2022.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in August 2024, prices reached a new peak, with the average home costing close to 290,000 British pounds. That 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 50 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 decline in house prices in 2022? 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 14 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 10-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

United Kingdom House Price: Qtr: First Time Buyer: Wales data was reported at 126,084.927 GBP in Sep 2018. This records a decrease from the previous number of 126,187.749 GBP for Jun 2018. United Kingdom House Price: Qtr: First Time Buyer: Wales data is updated quarterly, averaging 50,077.037 GBP from Mar 1983 (Median) to Sep 2018, with 143 observations. The data reached an all-time high of 130,601.260 GBP in Jun 2007 and a record low of 18,143.060 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: Wales data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s United Kingdom – Table UK.P001: House Price: Nationwide.

United Kingdom House Price: Qtr: First Time Buyer: North data was reported at 101,010.107 GBP in Sep 2018. This records a decrease from the previous number of 103,235.516 GBP for Jun 2018. United Kingdom House Price: Qtr: First Time Buyer: North data is updated quarterly, averaging 42,059.806 GBP from Mar 1983 (Median) to Sep 2018, with 143 observations. The data reached an all-time high of 108,409.991 GBP in Jun 2007 and a record low of 21,276.199 GBP in Mar 1983. United Kingdom House Price: Qtr: First Time Buyer: North data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s United Kingdom – Table UK.P001: House Price: Nationwide.

United Kingdom House Price: Qtr: Former Owner Occupier: North West data was reported at 187,919.447 GBP in Jun 2018. This records a decrease from the previous number of 188,458.897 GBP for Mar 2018. United Kingdom House Price: Qtr: Former Owner Occupier: North West data is updated quarterly, averaging 77,819.069 GBP from Mar 1983 (Median) to Jun 2018, with 142 observations. The data reached an all-time high of 188,874.550 GBP in Dec 2017 and a record low of 29,855.958 GBP in Mar 1983. United Kingdom House Price: Qtr: Former Owner Occupier: North West data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s UK – Table UK.P001: House Price: Nationwide.

RICS House Price Balance in the United Kingdom decreased to 11 percent in February from 21 percent in January of 2025. This dataset includes a chart with historical data for the United Kingdom RICS House Price Balance.

In 2023, the UK Real Estate Market reached a value of USD 816.7 million, and it is projected to surge to USD 919.0 million by 2030.

United Kingdom House Price: Qtr: Former Owner Occupier: London data was reported at 538,736.168 GBP in Sep 2018. This records a decrease from the previous number of 541,850.148 GBP for Jun 2018. United Kingdom House Price: Qtr: Former Owner Occupier: London data is updated quarterly, averaging 179,325.582 GBP from Mar 1983 (Median) to Sep 2018, with 143 observations. The data reached an all-time high of 554,172.252 GBP in Jun 2017 and a record low of 42,137.042 GBP in Mar 1983. United Kingdom House Price: Qtr: Former Owner Occupier: London data remains active status in CEIC and is reported by Nationwide. The data is categorized under Global Database’s United Kingdom – Table UK.P001: House Price: Nationwide.

The average house price in England started to increase in the first half of 2024, after falling by over three percent year-on-year in December 2023. In June 2024, the house price index amounted to 149.7 index points, suggesting an increase in house prices of 2.4 percent since the same month in 2023 and a roughly 50 percent rise since 2015 - the baseline year for the index. Among the different regions in the UK, West and East Midlands experienced the strongest growth.