The UK housing market has continued its upward trajectory, with new figures from the Office for National Statistics (ONS) revealing a 5.4% rise in average house prices in the year to February 2025. This brings the average UK house prices to £268,000, up from a 4.8% annual increase recorded in January.
UK House Prices Are On The Rise
The ONS data provides a detailed breakdown of regional property price trends across the UK. In Wales, the average property price reached £207,000, representing a 4.1% annual increase, albeit slower than January’s 5.6% rise. Scotland saw house prices climb 5.7% year-on-year, pushing the average to £186,000, an acceleration compared to the 5.3% growth the previous month.
Northern Ireland experienced the most significant jump in prices, with the average home valued at £183,000 in the final quarter of 2024, a substantial 9% increase from the same period the previous year.
UK Rental Market Sees Continued Pressure
The ONS also reported robust growth in the UK rental market. In the 12 months to March 2025, average monthly private rents increased by 7.7%, equating to a £96 rise, bringing the national average to £1,332.
Regionally, England recorded the highest average rent at £1,386, up 7.8%, followed by Scotland at £1,001 (5.7% increase), Wales at £792 (8.9% rise), and Northern Ireland at £838, showing a notable 8.2% annual increase to January 2025.
Among English regions, the North East saw the sharpest annual rent inflation at 9.4%, while Yorkshire and The Humber posted the lowest at 4.6%.
Expert Commentary On UK House Prices and Rents
Commenting on the data, Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, said:
“The latest figures from the ONS reflect both the resilience and challenges within the UK property market. Rising house prices and rental costs underscore the increasing demand for housing across the country. For homeowners and prospective buyers, it’s a critical time to review mortgage options. With inflationary pressures on rent and property values, securing the right mortgage deal is more important than ever to protect long-term financial wellbeing.”
Speak To A Mortgage Advisor
With house prices and rents continuing to climb, it’s essential for buyers, renters, and landlords alike to stay informed and plan ahead. Whether you’re stepping onto the property ladder, investing in buy-to-let, or remortgaging, understanding how market trends affect your financial position is crucial.
Contact our expert advisors at Oportfolio Mortgages today to discuss how these latest housing figures could impact your mortgage and to explore tailored solutions to suit your needs. Call us now for a free consultation with our dedicated team of mortgage professionals.
