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Average UK house prices increased by 2.8 percent, to £270,000, in the 12 months to July 2025; down from a 3.6 percent rise, in the 12 months to June 2025 - which makes a home worth £8,000 more than 12 months ago.
Average house prices increased to £292,000 (+2.7 percent) in England, and £209,000 (+2.0 percent) in Wales, according to the latest monthly house price report from the Land Registry.
Of the English regions, annual house prices grew most in the North East, where prices increased by 7.9 percent in the 12 months to July. London was the region with the lowest annual house price inflation, increasing 0.7 percent in the 12 months to July.
The Royal Institution of Chartered Surveyors' (RICS') July UK Residential Market Survey echoed the Land Registry findings when reporting that buyer demand and agreed sales are declining, while nationally, house prices edge lower.
HMRC's UK Property Transactions Statistics showed that in July, the estimated 96,000 homes worth £40,000 or more changed hands - 4.3 percent more than a year earlier.
| Region | Average price | Annual change |
|---|---|---|
| East Midlands | £239,830 | 2.80% |
| East of England | £337,650 | 2.10% |
| London | £561,587 | 0.70% |
| North East | £163,684 | 7.90% |
| North West | £213,266 | 4.80% |
| South East | £381,764 | 1.20% |
| South West | £306,148 | 1.40% |
| West Midlands Region | £247,763 | 3.30% |
| Yorkshire and The Humber | £205,656 | 3.90% |
| England | £291,852 | 2.70% |
| Wales | £209,178 | 2.00% |
Source: Land Registry
Mortgage lender Halifax reports house prices have dropped by 2.2 percent in the year to August. However, the average house price is £299,331, significantly higher than the UK average of £270,000 that the Land Registry published for July.
Head of Mortgages, Amanda Bryden, said: "The story of the housing market in 2025 has been one of stability. Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures.
"Affordability remains a challenge, but there are signs of improvement. Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4 percent."
Meanwhile, August's data from Nationwide shows house prices dropped 2.1 percent from a year earlier, valuing the average home at £271,079.
Robert Gardner, Nationwide's Chief Economist, said: "August saw a slight softening in the rate of annual house price growth to 2.1 percent, from 2.4 percent in July.
"The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms. House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years."