House prices across the United Kingdom saw a modest increase of 2 percent in the year to June, adding approximately £5,392 to the value of the typical home and bringing the average property price to £272,188, according to the latest figures from the Office for National Statistics. The market also experienced a slight rise of 0.1 percent between May and June, indicating resilience amid ongoing cost-of-living pressures.
The number of homes sold in England increased by 4,653 from April 2025 to reach 36,243 in June. However, Scotland and Wales have experienced slower growth compared to the rest of Britain.
Semi-detached homes have been the strongest performing property type, with prices increasing by 3.4 percent over the year to an average of £277,332. Detached houses remain the most expensive, averaging £444,652 after a 2.3 percent rise. Terraced properties saw a 3 percent increase to £230,994, while flats and maisonettes were the only major property type to decrease, falling 1.6 percent to £193,711.
Regional performance shows a significant divergence, with homeowners in the North West and North East experiencing substantial gains. Properties in the North West rose by 4.7 percent annually, an increase of £9,848, bringing the average price to £219,922. The Trafford area in Greater Manchester was highlighted as a strong performer, with average property values increasing by £34,944 to £396,811. Properties in the North East increased by 4.3 percent, adding £6,850 to the average home value, reaching £165,550. Yorkshire and the Humber saw prices climb 3.6 percent, or £7,285, over the year, with the average home now valued at £207,948.
The Midlands also reported price increases, with the West Midlands seeing a 2.6 percent rise to £250,941 and the East Midlands experiencing a 2.4 percent increase to £240,457. The Derbyshire Dales in the East Midlands was the best-performing area nationally, with house prices jumping 11.7 percent in a year, an increase of £37,108, bringing the value to £353,364.
In contrast, London continues to see a decline in property values. London house prices fell by 2.5 percent over the year, reducing average property values by £14,180 to £553,870. This marks the tenth consecutive month of annual price decline in the capital. Only 14 of London's 32 boroughs recorded annual price increases, with outer London areas performing better than central districts. Havering was the capital's strongest performer, with average prices rising 3.9 percent (£17,264) to £456,759.
Westminster recorded the most significant drop, with average property values plunging 25.4 percent, a fall of £290,624, leaving the typical home valued at £854,198. Kensington and Chelsea saw prices fall 14.7 percent, a decrease of £215,957, although average home values remain above £1.25 million. The City of London also experienced a substantial decline, with average values falling £182,717 to £712,958.
Estate agents note the market's resilience despite economic uncertainties. Tom Evans, Sales Director at Purplebricks Estate Agency, stated that the property market has remained remarkably stable for nearly two years, with encouraging signs of buyer confidence and increasing mortgage approvals and transactions. He added that while prices are broadly flat, remaining in positive annual growth territory, the market may be taking a pause rather than declining, with a positive longer-term outlook.