Average UK house prices: last 3 months
The average house price in the UK is £270,000 as of July 2025 (published August 2025). This is a rise of 1.3% or £3,560 over the past year.
Property type | May 2025 | June 2025 | July 2025 | Annual price change to July 2025 (£) | Annual price change to July 2025 (%) |
Average UK house price | £270,000 | £270,000 | £270,000 | £3,560 | 1.3% |
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Average house prices by property type: last 3 months
Property type | May 2025 | June 2025 | July 2025 | Annual price change to July 2025 (£) | Annual price change to July 2025 (%) |
Flats and maisonettes | £191,700 | £192,600 | £192,400 | -£980 | -0.5% |
Terraced houses | £238,400 | £239,600 | £240,300 | £4,330 | 1.8% |
Semi-detached houses | £275,700 | £277,200 | £278,000 | £6,680 | 2.5% |
Detached houses | £450,000 | £452,200 | £452,700 | £4,410 | 1.0% |
House price inflation stabilising at 1.3%
The housing market is busier than this time last year. Buyer demand has dipped a little over the summer, but it’s still 4% higher than a year ago. This has helped push sales agreed up by 5%.
House price growth has slowed in recent months, but it looks to have levelled out. Prices are now 1.3% higher than a year ago. That’s less than the 2.1% recorded at the start of 2025, but stronger than the 0.6% rise seen this time last year.
Growth is slower because buyers now have more choice, with 10% more homes for sale compared with a year ago, while affordability remains a challenge, particularly in southern England.
Even so, house prices are rising more slowly than average earnings, which are up 4.7%. This has been the case for almost three years and is gradually making homes more affordable, helping to support both buyer demand and sales.
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House prices rising faster in the North than the South
House prices are growing fastest in Northern Ireland, up 7.4% over the last year. Scotland (+2.1%) and the northern regions of England (+2%) are also seeing steady growth. Lower prices in these areas are helping with affordability, while strong sales have reduced the number of homes for sale. In fact, supply is down 1% in Scotland and 4% in northern England compared with last year. With fewer homes available, buyers are competing more, which is pushing prices up.
In contrast, southern England is seeing the slowest price growth, averaging just 0.4% annually. Here, the number of homes for sale has jumped, with supply up 18% in London and 12% across the South East and South West. More choice for buyers, combined with higher prices, is keeping house price inflation under control.
Time to agree a sale links to house price inflation
How quickly homes sell is a good guide to the health of the market, and it’s closely tied to house price growth.
In northern England, fewer homes for sale and more affordable prices mean sales are agreed more quickly. In July, homes sold in an average of 27 days in the North West and North East. This is 23% quicker than the national average of 35 days.
In southern England, higher prices and more homes on the market give buyers the upper hand. Here, sales are slower, taking an average of 39 days in July, which is 11% longer than the national average. This slower pace is helping to keep house price growth in check.
Homes with wrong asking price take twice as long to sell
The time on market measures how long it takes from a home being listed to a sale being agreed, subject to contract. It then takes another 4–6 months to complete the legal process and for the buyer to move in.
Homes that are priced well are attracting bids and selling in good time, though there are regional differences. In the first half of 2025, 2 in 5 homes listed went on to sell, and three quarters of these did so without needing a price reduction.
The level of interest a home attracts depends on local market conditions, how the property is presented, its condition, and the price it’s marketed at. Where the asking price is too high and needs to be cut, this has a big impact on the time it takes to sell.
On average, homes that require a price reduction take 2.4 times longer to find a buyer than homes priced correctly from the start.
With more homes now coming to the market, getting the price right is becoming increasingly important.
Areas where sellers need to be cautious
As market conditions have softened since the end of the stamp duty holiday in March, there has been a steady increase in the proportion of homes for sale with asking price reductions to try and attract buyer interest. July saw 1 in 10 homes for sale registering a cut to the asking price which is well above 6%, the 5-year average.
This highlights the need to accurately price homes for sale and speak to an agent with expertise in the local market. It also explains why house price inflation has been slowing in recent months.
September is the start of the autumn selling season when sellers who haven’t yet sold their home will speak to their estate agent about the strategy to find a buyer. One such strategy is adjusting the price lower or boosting the visibility of a property listing to a wider pool of buyers.
Where homes are taking longest to sell
Some markets are seeing a higher share of homes unsold after 6 months, especially in coastal areas of southern England where there’s more competition between sellers. In Truro, Exeter and Bournemouth, over a quarter of homes for sale have been on the market for more than 6 months, which is more than a third higher than average.
This is partly due to more second home sales following higher council tax, but also because greater choice is holding back prices. In these areas, average prices are now slightly lower than a year ago, down 1.1% and 1.4%. Other markets with above-average unsold stock include York, Torquay and Llandrindod Wells in Wales, where sellers will need to be realistic on price to secure a sale this year.
In contrast, some areas have much tighter supply, such as Dundee, Wolverhampton, the outer suburbs of London and Northampton.
Conditions vary widely across the country, which highlights the importance of speaking to a local agent for the right pricing and sales strategy.
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What’s next in the UK housing market?
There is plenty of demand for homes and more people are looking to move. However, buyers also have much greater choice to choose from, especially in some local areas. Media speculation over possible changes to property taxes could impact market activity in higher value markets, over £500,000, in the short term.
Sellers need to understand local market conditions when considering how to market their home, setting the right price and how quickly they would like to sell. The risk of being too ambitious on price is your home taking more than twice as long to find a buyer - or not selling at all.
We expect UK house price inflation to continue in a range of 1.5-2% over the rest of the year. There are signs that prices are firming in southern England but price growth is slowing across northern regions.
The market continues to record seasonally strong sales as those selling their home seek to secure their next home. The market remains on track for 5% more sales in 2025 at 1.15m.
Tax speculation
The media has been full of speculation over possible tax changes impacting the housing market in recent days. Ideas floated have included 1) the removal of stamp duty and replacement with an annual property tax for homes over £500,000 and 2) sellers of homes over £1.5m having to pay capital gains tax which would be a huge change for the market.
This is usual pre-Budget speculation but with extra housing focus generated by think tank proposals. Reform of property taxes to remove the barriers to moving and support economic growth have been long promoted. There would be universal approval of the abolition of stamp duty. However, it generates over £10bn a year.
Removing stamp duty at a time when finances are tight seems a strange move when the alternative annual property tax would take c.10 years to replace the lost revenue. There are big transitional risks and uncertainties of how this might distort the market, while the political risks also seem high.
Tax free gains on the sale of a main residence is a core part of home ownership in the UK. Second home-owners and investors already pay CGT. It’s a large tax relief for home-owners worth £36bn a year on HM Treasury estimates. The media speculation is focused on taxing gains on the 4% of homes for sale that are worth over £1.5m. This would be a huge change and send a strong signal over the direction of property tax that would likely have much bigger implications for the market.
The odds are that nothing changes in the short term but removing the costs and barriers to moving should be a key Government priority.
UK house price changes by region and city
About our House Price Index
The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes - it’s not an index tracking asking prices. The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.
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