The UK property market has maintained its growth, with the latest data from the Office for National Statistics (ONS) showing a 5.4% increase in average house prices over the past year to February 2025. This takes the average UK house prices to £268,000, from a recorded 4.8% rise in the previous annual rate, as measured in January.
UK House Prices Are On The Rise
The ONS data provide detailed analysis of the trends in regional house prices across the UK. Wales had an average price of £207,000, a 4.1% rise year on year, which was slower than the 5.6% increase recorded in January. Scotland had a 5.7% year-on-year increase, bringing the average to £186,000, faster than the 5.3% gain the previous month.
Northern Ireland experienced the biggest price increase, driven by a typical home now costing £183,000 during the fourth quarter of 2024, a staggering 9% more than last year’s same quarter.
UK Rental Market Continues to Experience Protracted Pressure
ONS also reported robust growth in the UK private rented sector. In the 12 months to March 2025, average monthly private rents increased 7.7%, or £96, to a national average of £1,332.
Regionally, the highest average rent of £1,386 was in England, up by 7.8%, followed by Scotland up by £1,001 (5.7%), Wales up by £792 (8.9%), and Northern Ireland up by £838, recording a huge 8.2% annual rise to January 2025.
Amongst the English regions, the North East recorded the sharpest annual rent inflation of 9.4%, whereas Yorkshire and The Humber recorded the lowest of 4.6%.
Expert Commentary On UK House Prices and Rents
On the statistics, Louis Mason, Marketing and Communications Director at Oportfolio Mortgages, commented:
“The latest figures from the ONS reveal both the pressures and flaws within the UK property market. Rising house prices and rents indicate increasing demand for housing across the country. For homeowners and prospective purchasers, it’s time to go around shopping for mortgage offers. With inflationary forces on house prices and rents, getting the right mortgage is more essential than ever to ensure long-term financial stability.”
Talk To A Mortgage Advisor
While house prices remain on the up, and rents continue to rise, it’s essential that everyone from buyers to landlords and tenants remains informed and prepares in advance. Whether you’re getting onto the ladder, purchasing buy-to-let, or remortgaging, understanding how developments within the market affect your finances matters.
Call our expert advisers at Oportfolio Mortgages today to discuss how these new home figures may influence your mortgage and learn about individual solutions tailored to your personal needs. Telephone now for a free review with our expert team of mortgage brokers.
