House prices rose by around 3% in 2024, and experts predict similar increases in 2025.
House prices increased slightly in 2024, but hopes for a significant market upswing have largely been postponed due to persistently high mortgage rates.
The latest data from the Land Registry shows a 5.4% annual increase, with the average UK house price at £268,000 in February.
Analyses what’s happening to house prices according to other indices such as Nationwide, Halifax, Rightmove, and Zoopla, and explains what might come next as 2025 progresses.
How Have House Prices Changed?
The Land Registry’s UK House Price Index is the most reliable barometer of what’s happening to house prices, as it is based on actual property sales rather than asking prices. Due to a two-month delay, the most recent figures refer to February 2025.
According to the Land Registry, the average price of a property in the UK rose by 5.4% between February 2024 and 2025.
In the previous 12 months, house prices had fallen by 1.6%.
There is a £102,838 gap between first-time buyers and existing homeowners in Great Britain (data for Northern Ireland is unavailable):
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First-time buyers: £227,114
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Existing homeowners: £329,952
How Do Other House Price Indices Compare?
In addition to the Land Registry data, there are a handful of other property price indices that show what’s happening to house prices.
The Rightmove portal provides the most up-to-date figures, but these are based on asking prices set by sellers rather than completed sales. Zoopla’s figures are based on sold prices, mortgage valuations, and recently agreed sales.
Nationwide and Halifax also publish their own monthly data based on mortgage approvals. All indices currently show annual price increases.
House Price Changes by Region – February 2025
Price changes vary from region to region and country to country.
Land Registry data for February shows a mix of price increases and decreases, with the North East of England recording the largest monthly increase.
How Many Homes Are Being Sold?
Property transactions picked up toward the end of 2024 as falling mortgage rates encouraged buyers to return to the market.
The latest figures from HMRC show an estimated 177,370 transactions in March 2025 – a 104% increase on 2024 figures. This sharp rise is linked to the introduction of new stamp duty thresholds from April 1.
The graph below shows how transaction numbers have fluctuated over the past three years.
How Long Does It Take to Sell a Property?
This depends on many factors, but in general, properties are taking longer to sell due to high mortgage rates.
Rightmove says it currently takes sellers an average of 59 days to find a buyer.
What Will Happen to House Prices?
Experts generally agree that house prices will rise this year, and forecasts are far more optimistic than a year ago.
Knight Frank and Zoopla predict modest growth of 2.5%, while Savills and Rightmove forecast increases of 4%.
Halifax expects house prices to rise by up to 3% next year, and Nationwide predicts growth of up to 4%.
News agency Reuters asked 21 UK housing experts for their forecasts in November.
On average, they predicted a 3.1% rise in 2025, with individual estimates ranging from 2% to 6%.
Is It Possible to Get a Good Mortgage Deal?
Mortgage rates increased slightly at the start of 2025 but have since begun to fall.
The average two-year fixed-rate mortgage was priced at 5.48% on January 1, 2025, and dropped to 5.26% by April 16, 2025.
Mortgage rates are expected to fall further over the next 12 months, with hopes that the Bank of England will continue to cut its base rate.
Check out our guide to the best mortgage rates for the latest information.
If you’re approaching the end of a fixed-term deal, our story on what to do when remortgaging offers advice on your options.