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We look at what’s happened to house prices so far this year, what’s likely for the rest of 2025, what early house price forecasts suggest for 2026, and what this means for you.
KEY INFORMATION
Average UK House Price: £270,000
Forecasted growth for 2025: 1% – 2%
Year to date house price growth in 2025 is 1.4%. It has been a year of two halves with stamp duty changes fuelling the first half and budget speculation cooling activity and house prices in the second.
Experts’ views for 2026
For the most comprehensive intel on house prices including what’s happening to house prices in your area, and the outlook for house prices check out our monthly House Price Index. Our latest report indicates that across all the major house price indices house prices were on average up +0.1% over the past month and +1.4% over the past year.
Sold prices are the most accurate indication of what’s happening with house prices. The most reliable measure is the Land Registry’s House Price Index.
Given that the Land Registry records actual sold data, it takes several months for the data to update. Therefore, it’s useful to also look at house price data produced by the lenders Nationwide and Halifax. While this is more up to date, it’s based on mortgage valuations so offers a less comprehensive picture.
Looking at what’s happening with asking prices can also give us a useful overview of what’s currently happening in the UK property market. However, the downside is that these figures are about the price asked for by buyers, not the sold price eventually agreed.
| Index | Monthly change | Annual change |
| Land Registry | -0.1% | +1.7% |
| Nationwide | +0.3% | +1.8% |
| Halifax | +0% | +0.7% |
| Rightmove | -1.8% | -0.5% |
| Average (excluding Rightmove) | +0.1% | +1.4% |
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Yes, it’s looking likely: experts’ house price predictions range between 1% and 4% growth in 2026.
But it’s worth noting that no one has a crystal ball and the experts often get house price predictions wrong.
Despite their limitations, expert house price predictions are useful if you’re keen to understand what is likely to happen this year so let’s take a look.
KEY INFORMATION
If you’re reading this wondering whether to move home this year and “time the market” right, then a word of warning: if you’re in the market for a home to live in, and you find one you like, and that you can see yourself staying in for a while, and can afford it without too much of a struggle, then trying to second-guess house price indices is a waste of your time.
But, if you do want to ponder the point of a house move further, then have a read of our latest analysis in Is now a good time to buy a house? and Should I sell my house now?
A national survey of 2000 UK adults carried out by the HomeOwners Alliance in April 2025 found that 45% of Brits overall expect house prices to rise this year, while about a quarter (26%) think they will stay the same and only 10% think they will fall. The remaining 19% don’t know what to expect in terms of house prices.
Those who aspire to own their first home, are more likely than existing homeowners to expect house prices to go up this year (57% vs 41%). While existing homeowners are more likely than aspiring homeowners to expect house prices to remain steady (31% vs 19%).
Over the last 5 years, UK house prices have risen steadily, despite increased mortgage costs driven by interest rates hikes. The current average UK house price is £270,000 Land Registry data shows.
Looking at national house price predictions and trends is useful but there are regional variations in house prices so an area by area overview can help you understand how prices have changed near you. Below are the latest regional shifts and we’ve pulled together a report on the cheapest places in the UK.
According to Land Registry data, House prices across the UK were down -0.1% in October.
UK annual house price inflation has slowed in most regions in England (+1.4% overall). Areas with a fall or slowest growth in house prices include: London (-2.4%) and the South West (-1.3%). Areas in England with stronger growth include the North East (+5.0%), Yorkshire & Humber (+3.1%), the North West (3.1%), West Midlands (+2.7%) and East Midlands (+2.3%). UK regions with the highest annual growth include Northern Ireland +7.1% and Scotland +3.3%.
| UK Region | Monthly change | Annual change | Average price |
|---|---|---|---|
| England | -0.1% | +1.4% | £291,515 |
| Northern Ireland | +4.3% | +7.1% | £193,247 |
| Scotland | -0.6% | +3.3% | £191,825 |
| Wales | +1.1% | +1.5% | £210,657 |
| East Midlands | -0.1% | +2.3% | £241,463 |
| East of England | +0.3% | +1.9% | £340,037 |
| London | -1.9% | -2.4% | £547,468 |
| North East | +1.3% | +5% | £163,153 |
| North West | +0.3% | +3.1% | £214,364 |
| South East | +0.3% | +0.7% | £383,742 |
| South West | -0.6% | -1.3% | £302,526 |
| West Midlands | +0.1% | +2.7% | £247,945 |
| Yorkshire & Humber | -0.2% | +3.1% | £206,139 |
Find out how much your house is worth with our online tool.
The Bank of England is expected to cut interest rates further in 2026 which will reduce mortgage costs. When borrowing is cheaper and buyers can borrow more, this can lead to an increase in house prices. But challenges remain for first-time buyers in terms of saving a deposit and mortgage affordability. Read our guide on Mortgage advice for first time buyers.
Stamp duty changes that came into force on 1 April 2025 have made buying a house more expensive for many homeowners. First time buyers now pay stamp duty on properties over £300,000 instead of the previous threshold of £425,000. While home movers now pay stamp duty on properties over £125,000 rather than the previous threshold of £250,000.
As a result, there was a surge of property transactions in March 2025 (177K) more than double the number of transactions last March. Not surprisingly, buyer demand cooled in April but buyers have started returning to the market in recent months — transactions and agreed sales are up year on year.
Chancellor Rachel Reeves unveiled tax rises that affect some homeowners in the latest budget.
Estate agents currently report that the number of homes for sale on their books is at a 10 year high. With buyer choice higher than usual, the market is considered to be very price-sensitive.
However, there is still an overall shortage of houses generally in the UK keeping house prices up. In Labour’s manifesto ahead of the 2024 General Election, the party set out its plan to restore mandatory house-building targets and pledge to build 1.5 million homes during its term.
The government is aiming for 370,000 new homes to be built in England every year. If the government does manage to consistently build hundreds of thousands of new homes annually, it’s likely that house prices will come down over the long term. But given how long it takes to build houses this would be unlikely to have an impact on house prices in 2026.
The wider economic climate contributes to house prices. If wage growth stagnates and unemployment rises, buyer demand or the price buyers can afford to pay may fall and this will have a knock-on effect on house prices. The UK economy is also impacted by global issues.
Mortgage rates on fixed deals have fallen making buying a house more affordable than it was a year ago. It also makes it easier for homeowners to borrow more to buy a more expensive house. This aligns with the predictions of moderate house price growth. Read our guide on Mortgage rate predictions which outlines the latest on what’s forecast to happen and the factors that could disrupt that.
Also, read our guide on How much can you afford to borrow for a mortgage and to see instantly how much you may be able to borrow based on your income, use this how much can I borrow for a mortgage calculator.
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
While slower house price growth evidenced in 2025 may disappoint some existing homeowners, it’s welcome news for first-time buyers.
Halifax says: “Comparing property prices to average incomes, affordability is now at its strongest since late 2015. Taking into account today’s higher interest rates, mortgage costs as a share of income are at
their lowest level in around three years.”
But getting on the housing ladder is still a challenge. There is some help at hand when it comes to buying your first home.
There are a number of schemes to help you buy a home including:
Get fee free mortgage advice from our partners at L&C. Use the online mortgage finder or speak to an advisor today.
Most experts are predicting steady house price growth in 2026 in the region of +2%.
Yes, potentially. There are lots of factors to take into account – and not just economic factors and house price predictions. Assuming you can afford to buy a home, when you decide to do it is a personal decision based on a myriad of personal factors. Read our guide Is now a good time to buy a house which covers everything you need to consider.
Homes with a high energy efficiency are more desirable for some buyers as it means energy costs will be lower. There is also government help available to make your home more energy efficient – see our guide on Energy bills help.
Savills‘ house price prediction for the next 5 years is that the average UK house price will rise by a total of 20% by 2030.
When the Bank of England cuts interest rates, mortgage rates normally fall too. And if the cost of borrowing falls and people can afford to borrow more on a mortgage, the house price forecast would be that prices could rise as a result.
In the last couple of years, various predictions of a house price crash were being bandied about. But as the figures show – this didn’t happen. There are no current indications that a house price crash is likely to happen.
Yes, house prices have gone up in 2025 and are expected to rise gradually in 2026. Our monthly House Price Index indicates that across all the major house price indices, house prices went up +0.1% on average over the past month and +1.4% over the past year.
However, this is a UK average and what happens with house prices can vary significantly depending on where you live. For more comprehensive information on what’s happening near you, read our House Price Index.
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice.
Mortgage service provided by London & Country Mortgages (L&C), Unit 26 (2.06), Newark Works, 2 Foundry Lane, Bath BA2 3GZ, authorised and regulated by the Financial Conduct Authority (FRN: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
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Bridging Loan and specialist lending service provided by Chartwell Funding Limited, registered office 5 Badminton Court, Station Road, Yate, Bristol, BS37 5HZ, authorised and regulated by the Financial Conduct Authority (FRN: 458223). Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.
