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.

Average House Prices in the United Kingdom decreased to 298602 GBP in February from 298815 GBP in January of 2025. This dataset includes a chart with historical data for the United Kingdom Average House Prices.

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.

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.

The average house price in the increased by 2.7 percent year-on-year in June 2024, according to the monthly house price index. The index is calculated using data on housing transactions and measures the development of house prices, with 2015 chosen as a base year when the index value was set to 100. In June 2024, the index reached 151 index points, meaning that house prices have grown by over 51 percent since 2015. The house price index is an important measure for the residential real estate market. It is used to show changes in the value of residential properties in England, Scotland, Wales and Northern Ireland. This upwards trend in house price index, and therefore the value of residential properties, has also been observed by other measurers of house price index in the United Kingdom.

Quarterly house price data based on a sub-sample of the Regulated Mortgage Survey.

Graph and download economic data for Real Residential Property Prices for United Kingdom (QGBR628BIS) from Q2 1968 to Q3 2024 about United Kingdom, residential, HPI, housing, real, price index, indexes, and price.

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.

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.

Median price paid for residential property in England and Wales, by property type and administrative geographies. Annual data.

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.

The house price index in London reached 129.9 index points in June 2024, which was an increase from a year ago, despite a mild correction. The house price index (HPI) is an easy way of illustrating trends in the house sales market and help simplify house purchase decisions. By using hedonic regression, the index models property price data for all dwellings and shows how much the price has changed since January 2015. How have regional house prices in the UK developed? House prices in other UK regions have risen even more than in London. In the North West, the house price index exceeded 160 index points, ranking it among the regions with the highest property appreciation. The UK house price index stood at 151 index points, suggesting an increase of 51 percent since 2015. Average house prices Location plays a huge role in the price of a home. Kensington and Chelsea and City of Westminster are undoubtedly the most expensive boroughs in London, with an average house price that can exceed one million British pounds. In comparison, a house in Barking and Dagenham cost approximately one third. Nevertheless, the housing market is the busiest in the boroughs with average house prices.

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

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.

The UK regions that observed the highest house price growth as of June 2024 were North Ireland and North West, where the HPI measured over 160 index points. The house price index (HPI) is an easy way of illustrating trends in the house sales market. By using hedonic regression, the index models property price data for all dwellings and shows how much the price has changed since January 2015. An index value of 160 index points indicates a price increase of 60 percent since 2015.

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.

Median price paid for residential property in England and Wales, for all property types by lower layer super output area. Annual data..

Average annual and quarterly house prices based on Land Registry data, by borough.

Lower and Upper quartile prices are included in the table. Quarterly Lower Quartile data is taken from DCLG Table 583 up to Q3 2011. All other data is from Land Registry.
Excluded from the above figures are sales at less than market price (e.g. Right To Buy), sales below £1,000 and sales above £20m.
The "median" property price is determined by ranking all property prices in ascending order.
The median is the mid-point of this ranking with 50 per cent of prices below the median and 50 per cent above
The figures for the latest quarter are provisional and figures for all other quarters have been revised.

Data from CLG Table numbers: 581, 582, 585 and 586.

From the 1st of November 2012 DCLG no longer publishes this data at regional level.

Now also includes monthly data from the Land Registry.

Also available are Average house prices for London, by borough, ward, LSOA and MSOA, based on GLA calculations of Land Registry price paid datasets.

Price Paid Datasets

The full land registry price paid datasets are available to download here. This shows details of each house sale since 1995 in England and Wales. The files are broken down into smaller chunks to make it possible to open in Excel2010.

The England and Wales files contain the following fields:

unique_id
price
date
Post code
Property type
Whether newbuild
Freehold
Address1
Town

Local_authority
County
Record_status
Year
Month
Quarter
Region
Country

The London files contain the following fields:

id (London)
transaction_id
Price
Date_processed
Quarter
Month
Year
Year_month
Post_code
Property_type
Whether_new
Tenure
Address1
Address2
Address3
Address4
Town
Local_authority
County
Record_status
Post_code_clean
Inner_outer
Borough_code
Borough_name
Ward_code
Ward_name
MSOA11
LSOA11
OA11

Download (Beware: large file sizes):

England and Wales 1995-2013 (Zip) 911MB

London 1995-2013 (Zip) 190MB

NB Files correct to end of March 2014.

https://www.gov.uk/government/statistical-data-sets/house-price-index-background-tables

https://www.gov.uk/government/statistical-data-sets/live-tables-on-housing-market-and-house-prices