UK house price index March 2025 summary
House prices in the UK continue to rise. The latest UK House Price Index shows the average property sold for £271,000 in March 2025 — a 6.4% increase from the previous year. Detached homes remain the most expensive, while flats are still the most affordable. But regional trends and buyer behaviour paint a more detailed picture of what’s really happening in the market.
This blog breaks down the latest UK HPI report and highlights key stats from March 2025. We’ve included prices by property type, region, buyer type and funding method — plus insight into what may be driving changes in the market.
Key points include:
- The average UK house price is now £271,000, up 6.4% year-on-year.
- Detached houses are the most expensive at £437,325 on average.
- Flats and maisonettes are the least expensive, averaging £199,520.
- Northern Ireland had the strongest annual growth at 9.5%.
- Buyer activity surged in March ahead of the stamp duty change on 1 April.
- Cash buyers paid an average of £258,369, while mortgage buyers paid £281,080.
Property prices by type
Here’s how average prices looked across the main property types in March 2025:
Detached homes are almost 2.2 times more expensive than flats, showing just how much property type impacts overall value.
Average house prices by UK country and region
Here’s how prices varied around the UK:
The North East led growth, while London saw the slowest increase.
Buyer status: First-time buyers vs existing homeowners
First-time buyers are paying significantly less than those moving up the ladder.
Cash vs mortgage buyers
Mortgage buyers paid on average £22,700 more than cash buyers in March 2025.
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Sales volumes and activity
- The number of UK property transactions in March surged, likely due to buyers rushing to complete before the stamp duty threshold change on 1 April 2025.
- On a seasonally adjusted basis, UK residential transactions reached 177,000 — up 104.3% compared to March 2024.
- The sharpest increases were in England (up 89%) and Northern Ireland (up 47%).
New builds vs existing homes
New builds continue to command a premium and are rising in value much faster than resales.
What might be impacting changes in property prices?
Several broader factors are shaping price movements across the UK:
Interest rates and affordability
Mortgage rates have stayed high since 2023, which reduces affordability for many buyers and can restrict demand.
Stamp duty changes
The rush to complete purchases before the 1 April 2025 stamp duty threshold drop caused a short-term spike in transactions.
Regional confidence and buyer demand
Cheaper northern regions are seeing faster growth, partly due to improved accessibility for remote workers and first-time buyers.
Mortgage approval trends
According to the Bank of England, mortgage approvals fell for the third month in a row — a possible sign of weakening demand ahead.
Slower new build supply
Housing supply remains tight, especially in high-demand areas. This can push prices higher, even if demand is patchy.
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