HOUSE prices increased by 3.9%, to £269,000, in the 12 months to May 2025, up from 3.6% in the 12 months to April 2025, according to official data published this morning.

In May, the averagemonthly price change for a property in the UK was 1.1%. Average house prices increased to £290,000 (3.4%) in England, £210,000 (5.1%) in Wales, and £192,000 (6.4%) in Scotland, in the 12 months to May 2025.

Meanwhile, average UK monthly private rents increased by 6.7%, to £1,344, in the 12 months to June 2025, down from 7.0% in the 12 months to May 2025.

Average rents increased to £1,399 (6.7%) in England, £804 (8.2%) in Wales, and £999 (4.4%) in Scotland, in the 12 months to June 2025. In Northern Ireland, average rents increased to £852 (7.6%) in the 12 months to April 2025.

In England, private rents annual inflation was highest in the North East (9.7%) and lowest in Yorkshire and The Humber (3.5%), in the 12 months to June 2025.

Reflecting on the data, Shaun Sturgess, Director at Swansea-based broker Sturgess Mortgage Solutions, said “the property market remains incredibly busy. Buyers are undeterred, with many seeing the long-term value and stability of homeownership as a better alternative to rising rents. I’m seeing more and more people realising that their monthly rent could be a mortgage instead. Even with prices edging up, demand is strong — especially here in South Wales — and the appetite to buy shows no signs of slowing. In fact, rising rents are pushing more first-time buyers to take action sooner. Many are tired of paying £800–£1,000 a month to a landlord when they could be investing in their own future. With competitive mortgage products still available and growing awareness around affordability, we’re likely to see activity remain high throughout the rest of the year”.

Michelle Lawson, Director at Lawson Financial, said the data reflects what brokers are experiencing on the ground but warned rents could rise in the months ahead: “Property prices gently nudging up echoes the activity we are seeing. The tenant rent bubble seems to have reached a peak for now, but that could change quickly when the Renters Reform Bill and EPC changes kick in. We will possibly see a further increase in rents as landlords have no option but to pass increased costs onto their tenants.”

Babek Ismayil, Founder at OneDome, added: “Falling rents will offer relief to the UK’s tenants who have been under the cosh for too long. The increase in house prices shows activity levels are starting to rebound after the lull that followed the stamp duty deadline. The property market is showing its usual resilience and, if we get a rate cut in August, mortgage rates are likely to come down further, giving buyer sentiment a real shot in the arm. If the Bank of England cuts rates on 7 August, expect a busy end to 2025.”

Craig Fish, Director at Lodestone, said “house prices are holding firm, so it’s great to see lenders starting to ease affordability checks off the back of recent government changes. As for renters, after months of sharp rent hikes, things are finally starting to settle”.

Emma Jones, Managing Director at Whenthebanksaysno.co.uk, added that “this latest data paints a picture of a property market still under pressure but showing signs of stabilisation. The acceleration in house price growth, albeit modest, suggests renewed buyer confidence likely influenced by expectations of interest rate cuts and persistent rental inflation. For prospective buyers, especially first-timers, the window to act before conditions tighten again could be narrowing”.

Andrew Montlake, CEO at Coreco, commented: “During the first half of 2025, the property market was definitely skewed by the stamp duty changes, with a lot of activity brought forward to secure the savings on offer. Now, things are now getting back on track. Even though inflation ticked up slightly this morning, making the Bank of England’s tightrope walk between curbing inflation and promoting growth that little bit harder, it’s still likely that we will see at least one rate cut this year, if not two. The economy is stalling and desperately needs an injection of life, which will boost sentiment in bricks and mortar and see increased buyer activity. The second half of the year could be busy if the Bank of England delivers a rate cut in August.”