House Price Index May 2025
With higher stamp duty rates from 1st April, transactions in April fell to their lowest level in 15 years after a surge in March. And, with homes for sale at a decade high, house prices fell in May and annual house price growth slowed. However, reports are that agreed sales continue to be ahead of last year. There are early signs of more buyer enquiries reported by Rightmove and Zoopla, and with mortgage affordability improving, activity is expected to regain pace in the months ahead with modest house price growth.
What’s happening nationally
House prices are down on average -0.9% over the past month and the rate of annual house price growth slows to +3.2%. Transactions fall to lowest level in 16 years after surge in March with rise in stamp duty.
Most of the indices reported a slowing in house prices over the past month. Land Registry (-2.7%) and Halifax (-0.4%) report a fall in monthly house prices, while Rightmove shows a modest rise of +0.6% (low for this time of year) and Nationwide reported house prices back up +0.5% after a fall last month. The rate of annual growth is generally down over the month with the following figures reported: Land Registry (+3.5%), Nationwide (3.5%), Halifax (2.5%), Rightmove (1.2%).
Note that there has been a change of methodology in the calculation of the Land Registry house price index. From February 2025 reporting, January 2023 became the new reference period for inflation rates. Land Registry has been re-referenced because the types of property being sold can change over time.
Indices based on:
Land Registry – registered property transactions in April.
Nationwide & Halifax – mortgage valuations in May.
Rightmove – asking prices posted on Rightmove in May.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
| Index reports: | Monthly change | Annual change |
|---|---|---|
| Land registry | -2.7% | +3.5% |
| Nationwide | +0.5% | +3.5% |
| Halifax | -0.4% | +2.5% |
| Rightmove | +0.6% | +1.2% |
| Average change | -0.9% | +3.2% |
House prices in your area
Regional house prices
House prices have fallen in most areas of England over the past month. Across England the monthly change is -3.7%. House prices were relatively steady in Wales (+0.3%) and up in Northern Ireland (+1.0%) and Scotland +(2.1%).
Over the last year, house prices have increased in all areas with the biggest rises in Northern Ireland (+9.5%), the North East (+6.4%), Scotland (+5.8%), Wales (+5.3%) and Yorkshire and Humber (+4.0%). House price growth is broadly higher in the North vs South of the UK.
Most expensive/ cheapest areas
In terms of average house price, the most expensive areas in the UK are London (£566K), the South East (£380K), the East of England (£332K) and the South West (£300K). The cheapest areas are the North East of England (£156K), Northern Ireland (£185K), Scotland (£191K) and Yorkshire & Humber (£200K).
In terms of city house prices reported by Hometrack, the most expensive cities in the UK alongside London are Cambridge (£471K) and Oxford (£453K). The cheapest cities in the UK in terms of house prices are Aberdeen (£132K) and Newcastle (£159K).
Prices by property type
House prices increased in the last year for semi-detached (+5.1%), detached (+5.0%), terraced (+2.8%) properties and for flats/ maisonettes (+0.6%).
| UK Region | Average price £ | Monthly change | Annual change |
|---|---|---|---|
| England | |||
| Nothern Ireland | |||
| Scotland | |||
| Wales | |||
| North West | |||
| Yorkshire and The Humber | |||
| North East | |||
| West Midlands | |||
| East Midlands | |||
| South West | |||
| East of England | |||
| South East | |||
| London |
| UK City | Average price | Annual change |
|---|---|---|
Market Monitor
With rising stamp duty rates starting the 1st April, there was a huge drop off in transactions (65K in April) after the spike in transactions in March (177K) to beat the stamp duty deadline. This is a drop of -63% over the last month and -28% lower than April last year when transactions of 90K were actually below the long run average.
The level of new buyer enquiries fell again in May while new listings for sales were up again this month. With the continued rise in listings, the number of homes for sale are reported to be at a decade high.
The average time to secure a buyer is 59 days according to Rightmove, steady with last month – below the 12 month average of 64 days.
How busy is the market?
- Not busy
- Normal
- Very busy
- Transactions fall to lowest level in 15 years after rise in stamp duty in April
- Total transactions in April 2025 65K
- -63% versus last month
- -28% from April last year (when transactions were below the long run average)
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries down again(-26% RICS May data)
- Seller instructions up slightly (+7% RICS May data)
- Average stock per agent 63 in May; up from 60 last month (incl under offer/ Sold STC Rightmove)
Average speed of sale
- Fast
- Normal
- Slow
- May figure: 59 days to find a buyer steady month on month; below 12 month average of 64 days (Rightmove)
What the experts say
Rightmove
“New seller asking prices rise by 0.6% this month, the lowest at this time of year since 2016, as the decade-high number of homes for sale limits price growth. After a busier than usual March, new buyer demand slowed to 4% below the same month in 2024. However, demand in the year to date is still 3% ahead of last year. April saw what appears to be a post-stamp-duty-increase lull in new buyer demand. This slowdown is perhaps understandable after the busy first quarter of the year, though there are early signs that the lull may be short-lived. Mortgage rates will be crucial in determining the level of buyer activity for the rest of the year. They have been trickling downwards, and there is hope that the recent Bank Rate cut, the second of the year, may spur on further reductions from lenders.”
Nationwide
“Annual UK house price growth was marginally stronger in May at 3.5%, compared with 3.4% in April. House prices rose by 0.5% month on month, after taking account of seasonal effects. Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021 (which was also impacted by stamp duty changes). Nevertheless, mortgage approvals data suggests that market activity appears to be holding up well following the end of the stamp duty holiday. Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive. Borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we, and most other analysts, expect.”
Zoopla (Hometrack)
“The number of housing sales is on the rise with home buyers return to the market after the end of stamp duty relief and the Easter holidays. There are 13% more homes for sale than a year ago. The average estate agent office has 35 unsold homes. Most of these home sellers are also buyers, which means plenty of interest for well-priced homes. It’s important that sellers are realistic with their expectations on price. Our data shows the average home sale is currently being agreed at 3% (or £16,000) below the average asking price, a level that has been stable over recent months. Strong competition in the mortgage market and less stringent affordability testing is set to support buyer demand and sales volumes over the second half of 2025.”
Halifax
“Small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty. Affordability remains a challenge, with house prices still high relative to incomes. However, lower mortgage rates and steady wage growth have helped support buyer confidence. The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends. Despite ongoing pressure on household finances and a still uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead.”
RICS
“The May 2025 RICS UK Residential Survey results continue to signal a generally soft market backdrop at present, as indicators on buyer demand and sales activity remain negative for the time being. Notwithstanding this, near-term expectations now sit in broadly neutral territory, suggesting conditions may stabilise over the next few months.”
