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Table of Contents
- What is happening to house prices in the UK?
- Average UK property prices
- Latest house price changes across the UK
- How property prices are changing where you live
- London house prices
- Are house prices falling?
- UK house price forecasts 2025 and beyond
- Expert UK housing market predictions
- Is now a good time to buy a house?
- UK House Price FAQs
What is happening to house prices in the UK?
House prices in the UK have hit a record high after values increased at the fastest rate for two years in November. According to Halifax, the average house price in the UK now stands at £298,083, thanks to a fifth consecutive month of rises. On an annual basis, property prices are 4.8% higher than a year earlier, a pace of growth not seen since November 2022.
Halifax said the figures reflected an improvement in the demand for mortgages, brought about by lower mortgage rates boosting buyer confidence. The findings broadly echo those of Nationwide, which reported its latest data earlier in the week.
The November figures represent something of a turnaround in fortunes for the property market. Last month, both lenders reported that growth in prices had slowed in October.
The property portal Rightmove also recently reported that asking prices set by new home sellers dropped by more than usual in November.
| Nationwide | Halifax | Rightmove | Land Registry | |
|---|---|---|---|---|
| Average house price | £268,144 | £298,083 | £366,592 | £291,828 |
| Monthly change | +1.2% | +1.3% | -1.4% | -0.3% |
| Annual change | +3.7% | +4.8% | +1.2% | +2.9% |
| Figures for | November 2024 | November 2024 | November 2024 | September 2024 |
| Methodology | Based on Nationwide mortgage transactions | Based on Lloyds Banking Group mortgage transactions | Based on asking prices of newly marketed properties | Based on official completed house sales data |
Average UK property prices
The average house price is £308,782 in England, £216,750 in Wales, and £198,046 in Scotland, according to Land Registry data for September 2024. In the third quarter of 2024, the average property price in Northern Ireland was £190,553.
On a regional basis, the highest average house prices in England in September 2024 were in London, at £526,000, and in the South East, at £383,000. Average property prices were lowest in the North East, at £171,000.
Latest house price changes across the UK
The direction and pace of house price changes differ across the UK. In September, average house prices in England fell by 0.1% compared with the previous month, while in Wales prices dropped by 2.2%. In Scotland, prices are 0.9% lower month-on-month, according to the latest Land Registry data.
On an annual basis, average house prices are 2.5% higher in England and 0.4% higher in Wales compared with a year earlier. Property prices in Scotland are 5.7% higher year-on-year. In Northern Ireland, monthly prices were 2.8% higher and annual prices were 6.2% higher in Q3 (July-September) 2024.
| UK | England | Scotland | Wales | Northern Ireland | |
|---|---|---|---|---|---|
| Average house price | £291,828 | £308,782 | £198,046 | £216,750 | £190,553 |
| One year earlier | £283,680 | £301,258 | £187,428 | £215,936 | £179,348 |
| Annual change | +2.9% | +2.5% | +5.9% | +0.4% | +6.2% |
| Monthly change | -0.3% | -0.1% | -0.9% | -2.2% | +2.8% |
Source: HM Land Registry. Figures for England, Scotland and Wales are for September 2024. Figures for Northern Ireland are for Q3 2024.
How property prices are changing where you live
Average house prices in September increased month-on-month in some regions of England, but fell in others. The largest monthly increase is in the North East, where prices increased by 2.4% compared with August. Yorkshire and the Humber saw the largest monthly fall, dropping by 1.7%.
Average property prices remain higher than a year ago in every region of England except London, where values are 0.5% lower than 12 months earlier. The largest annual rise is in the North East, at 6.5%.
London house prices
The average house price in London in September 2024 was £525,586. Property values in the capital are down 0.8% month-on-month and 0.5% lower compared with a year earlier.
However, property prices can vary widely between different London boroughs. In September 2024, the highest house prices in London were in the borough of Kensington and Chelsea, where the average property costs £1.18 million. The lowest house prices in London were in Barking and Dagenham, at an average cost of £337,875.
Are house prices falling?
House prices in the UK are currently rising. Nationwide data shows property values were 1.2% higher month-on-month in November, the biggest monthly increase since March 2022. Annual growth of 3.7% was the strongest seen since November 2022. The latest data from Halifax shows a similar uplift in prices.
It’s important to note that property prices, and the direction and pace of price movements, change all the time. However, there are signs that the underlying trend of steadily rising property prices that has generally been the norm in recent years may have resumed.
UK house price forecasts 2025 and beyond
It is generally predicted that property prices will continue to rise in 2025, and in the years after.
| 2025 | 2026 | 2027 | |
|---|---|---|---|
| Knight Frank | +2.5% | +3.0% | +3.5% |
| Office for Budget Responsibility | +1.1% | +1.8% | +2.7% |
| Savills | +4.0% | +5.5% | +5.0% |
| Capital Economics | +5.0% | +4.0% | – |
Expert UK housing market predictions
Amanda Bryden, Head of Mortgages, Halifax
“Latest figures continue to show improving levels of demand for mortgages, as an easing in mortgage rates boost buyer confidence. However, despite these positive trends, many potential buyers and movers still face significant affordability challenges and buyer confidence may be tested against a changeable economic backdrop. As we move towards the end of the year and into 2025, positive employment figures and anticipated decreases in interest rates are expected to continue supporting demand. This should underpin further house price growth, albeit at a modest pace as borrowing costs remain above the average of a few years ago.”
Richard Donnell, Executive Director, Zoopla
“The housing market has been very resilient in the face of higher borrowing costs over the last two years. Higher income growth and 4% mortgage rates have done much to repair headline affordability. We expect house prices to rise by 2.5% over 2025, with sales agreed ending 5% higher at 1.15 million sales. House price inflation in southern England will continue to lag behind the UK average. Incomes need to continue to rise faster than prices to help reset affordability and price more households into the market. First-time buyers will remain an important buyer group, but existing homeowners looking to move need more support to help realise their ambitions, with more and more having to look further afield to find better value for money.”
Robert Gardner, Chief Economist, Nationwide
“Gauging the underlying strength of the market will be more difficult in the coming months as the upcoming stamp duty changes will provide an incentive for buyers to bring forward house purchases to avoid paying additional tax. This is likely to lead to a jump in transactions in the first three months of 2025 (especially in March) and a corresponding period of weakness in the following three to six months, as occurred in the wake of previous stamp duty changes. This has the potential to shift the demand/supply balance in the near term and impact price movements. But, providing the economy continues to recover steadily, as we expect, the underlying pace of housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
Tim Bannister, Director of Property Science at Rightmove
“We had been seeing a drop-off in buyer demand, both in the lead-up to the Budget and in its immediate aftermath, as it was confirmed that there will be an increase to stamp duty charges for most home-movers and second-home buyers, and some first-time buyers. However, a second Bank Rate cut and a boost of optimism regarding 2025 appear to have reversed this trend at least temporarily. Zooming out of these short-term trends, the big picture of market activity remains positive when compared to the quieter market at this time last year. This sets us up for what we predict will be a stronger 2025 in both prices and number of homes sold, particularly if mortgage rates fall by enough to significantly improve affordability for more of the mass-market.”
» MORE: Where is the cheapest place to rent in the UK?
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Is now a good time to buy a house?
Financially, the best time to buy a house is when mortgage rates and house prices are both low. In reality, the chances of this happening, and being able to time a purchase right, are slim. So instead, it’s important to find a property and mortgage you can afford without overstretching.
While mortgage rates have dropped since the middle of last year, they remain significantly higher than through most of the 2010s and early 2020s. Simply put, mortgages aren’t as affordable as a few years ago.
If your funds are tight, waiting for rates to come down may be your only option. However, there is uncertainty over what may happen to rates for the rest of the year. Forecasts also suggest that house prices will end the year higher than where they began.
Ultimately, it’s impossible to predict with any certainty what will happen to house prices and the cost of mortgages.
Because of this, whether now is a good time to buy a property or not largely depends on your circumstances, priorities and outlook. Getting mortgage advice can help you figure out the numbers. But the ultimate decision to buy now or wait will rest with you.
» MORE: Check current mortgage rates
UK House Price FAQs
The average house price in the UK was £291,828 in September 2024, up from £283,680 a year earlier, according to the latest HM Land Registry UK House Price Index. This means UK property prices are 2.9% higher than a year ago, but 0.3% lower month-on-month.
Most house price forecasts predict property prices will rise in 2025. For example, Capital Economics forecasts a 5% increase in property values, while Savills anticipates growth of 4%.
The Royal Institution of Chartered Surveyors (RICS) said the results of its latest survey continued to suggest “an improving market backdrop”. According to surveyors, buyer demand was positive for the fourth month in a row, while the number of agreed sales remained in positive territory for the third straight month. A growing number of those questioned also expect property prices to rise in the coming months.
Home sellers are taking on average 62 days to find a buyer, the same length of time as a year earlier, according to the latest Rightmove data for October 2024.
The average discount secured by home buyers on asking prices was £16,600 – or 3.2% – in June, according to Zoopla. This compares with the typical discount of £23,000, or 4.4%, that buyers were securing in October last year. The property website said discounts were bigger last year because higher mortgage rates meant there were fewer buyers around.
House prices in London are falling, according to the latest Land Registry data. In September, property values in London were 0.5% lower than a year earlier, and 0.8% down compared with the previous month. As a result, the average house price in London stands at £525,586, around £3,000 lower than in September 2023.
There are several house price reports and indices published each month that provide insight into house price trends and the housing market in the UK. Four of the most respected indices are published by HM Land Registry, Rightmove, Halifax and Nationwide, each showing how property prices are changing from month to month and on an annual basis. However, as each index tends to be based on different data and may be calculated in different ways, they often show different average house prices and changes when compared with one another.
Land Registry sold house price data is usually considered one of the most accurate housing market barometers because it is based on completed property sales, and includes cash purchases, as well as properties bought using a mortgage. However, because it is collated in this way, the data tends to be around two months behind other indices.
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