UK House Price Index May 2025 summary
UK house prices bounced back in May 2025, rising by 1.1% from April to reach an average of £269,000. This marks a 3.9% increase year-on-year, signalling cautious recovery after April's slowdown. Detached homes remain the highest-value property type, while the North East continues to lead regional price growth. Meanwhile, transaction volumes and mortgage approvals both increased as the market stabilised post-stamp duty reforms. This summary breaks down key insights from the latest UK HPI release, including average prices by property type, region, buyer type and funding method — plus commentary on shifting trends.
We've reviewed the May 2025 UK House Price Index and highlighted the key updates:
- The average UK house price was £269,000, up 1.1% from April and 3.9% year-on-year.
- Detached homes averaged £441,439 — the most expensive property type.
- Flats remained the most affordable, with an average price of £198,262.
- Northern Ireland saw the highest growth at 9.5%, based on Q1 data.
- Sales volumes rebounded sharply after April's slump.
- Mortgage approvals increased for the first time since December 2024.
- Cash buyers paid £255,125 on average; mortgage buyers paid £278,384.
Comparison with April 2025
The market regained some strength in May after April’s post-stamp-duty dip. Key changes included:
The market correction following April’s stamp duty cut appears to have stabilised, with both prices and transactions increasing in May.
Property prices by type
Detached homes remain more than twice as valuable as flats, continuing the pattern seen in prior months.
Average house prices by UK country and region
While London showed a month-on-month decline, most regions recorded solid growth — especially in the North and Midlands.
Buyer status: First-time buyers vs existing homeowners
Prices continue to be significantly lower for first-time buyers, though both buyer groups saw increases in May.
Cash vs mortgage buyers
Mortgage buyers paid around £23,259 more on average than cash buyers — a persistent premium that reflects access to broader inventory and competition.
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Sales volumes and activity
Transaction volumes bounced back sharply in May 2025 after the significant April dip that followed the SDLT changes.
- England: Up 52.0% (MoM).
- Wales: Up 8.0%.
- Scotland: Up 2.4%.
- Northern Ireland: Up 51.2%.
- UK Total: Up 25.1% (seasonally adjusted).
May’s recovery brings activity back toward typical levels after the volatility of early spring.
New builds vs existing homes
New build prices surged, continuing their double-digit annual growth due to supply constraints and increased demand.
Market outlook
The May data suggests the market is regaining footing after April's volatility:
- Stamp duty changes caused significant short-term disruption.
- Transaction volumes and mortgage approvals both rebounded.
- Market confidence is still cautious, but improving.
- Regional trends remain varied — with northern areas seeing the strongest gains.
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