UK house prices rose by 6.45% in the year to March 2025, marking the strongest annual growth since early 2024, according to official data published today by the Office for National Statistics (ONS) and HM Land Registry.
The average UK property was valued at £271,000 in March, up £16,000 compared with the same month last year.
Monthly growth reached 1.1% on a non-seasonally adjusted basis – a significant acceleration compared with 0.2% recorded in March 2024. Seasonally adjusted data showed even stronger growth of 1.4%.
The figures, part of the UK House Price Index, follow a re-basing of the series earlier this year, with January 2023 now serving as the reference point.
REGIONAL DATA
The March index stood at 104.0, a level designed to better reflect the value of the average property sold across the UK.
Regional data shows England continues to lead the recovery in absolute price terms, with the average home reaching £296,000 – a 6.7% increase year-on-year.
Wales posted a more modest rise of 3.6% to £208,000, while prices in Scotland climbed 4.6% to an average of £186,000.
Northern Ireland recorded the highest annual growth of any UK nation, with house prices rising by 9.5% in the year to Q1 2025. Average property prices there now stand at £185,000.
SUSTAINED CONFIDENCE
The latest figures suggest sustained confidence in the housing market, underpinned by easing inflation and steady interest rates.
The index also reflects a pattern of upward revisions following the temporary extension of the standard 12-month revision window in September 2024 – a change since reversed as of October. Nonetheless, users are advised that figures, particularly for new-build properties, may remain subject to revision.
The data shows a clear acceleration from the revised annual growth figure of 5.5% for February 2025, reinforcing the view that the market is stabilising after a period of turbulence.
BUMPS IN THE ROAD
Ben Thompson, Deputy CEO of Mortgage Advice Bureau, says the data should not deter buyers: “Encountering this particular bump in the road was widely expected.
“Inflation rising to 3.5% shouldn’t discourage homebuyers – especially as summer tends to be the most popular time to move.
“In fact, our research shows that 72% of our customers moved during the summer of 2024, just before mortgage rates began to fall from recent highs.
“It’s arguably one of the best times in recent memory to buy.”
BIG QUESTIONS
And John Phillips, CEO of Just Mortgages and Spicerhaart, adds: “April brought a wave of inflation-linked price hikes, most notably to energy and water bills, as well as increased business costs from changes to national insurance and the minimum wage.
“The real question now is how this affects the Bank of England’s approach to interest rates. While inflation may rise further before retreating, the broader shift still seems to favour supporting economic growth, particularly in light of ongoing global uncertainty.”
