Published: 07/04/2025 By Zoopla
Key Facts:- House price inflation slows to 1.8% as the supply of homes for sale outpaces the growth in sales agreed
- Sales agreed continue to rise, up 5% year-on-year
- Price inflation above average in northern regions and Scotland, where demand is growing faster than supply
- Supply/demand mismatch keeping price inflation 1% or lower in southern regions of England and London
- It is expected that agreed sales will continue increasing but rising supply and static mortgage rates will temper the rate of price inflation
The average house price in the UK is £267,500 as of February 2025 (published in March 2025).
Property prices are now at +1.8% inflation compared to a year ago and the average UK house price is set to rise by 2.5% by the end of the year.
| Property type | Average house price in December 2024 | Average house price in January 2025 | Average house price in February 2025 | Annual price change (£) | Annual price change (%) |
| All property | £267,200 | £267,400 | £267,500 | £4,720 | 1.8% |
| Detached houses | £448,700 | £448,600 | £449,100 | £5,310 | 1.2% |
| Flats | £191,700 | £191,600 | £191,400 | £210 | 0.1% |
| Semi-detached houses | £273,200 | £273,300 | £274,100 | £6,820 | 2.6% |
| Terraced houses | £235,900 | £235,900 | £236,500 | £5,210 | 2.3% |
While this means that house price inflation is in fact slowing, the number of sales agreed continues to increase, up 5% on a year ago, with demand 10% higher.
The number of homes for sale is 11% higher than this time last year, and set to keep rising as we enter the spring selling period. Almost 30% of homes are listed for sale between March and May each year.
Concerns over the outlook for inflation mean fewer base rate cuts are expected over 2025. This has reduced expectations that mortgage rates might fall further, which would support household buying power. Average mortgage rates have stabilised in recent months at around 4.4%, up from 4% at the end of 2024.