UK Housing Market Update: Q2 2025
Published: 20 Aug 2025
Commentary By: HomeNow Insights Team
Welcome to the Q2 2025 edition of our UK Housing Market Update, covering sales and rental trends across England, Wales, Scotland, and Northern Ireland. This summary uses the latest quarterly averages to give buyers, sellers, landlords and renters a clear picture of what’s happening now.
Click to enlarge: UK Housing Market Map (Q2 2025, ONS-based)
Tip: click the image (or the caption) again to collapse.
UK Average House Price
£265,667
Annual growth (Q2 2025 vs Q2 2024): +2.8%
Quarter-on-quarter (vs Q1 2025): -0.6%
UK Average Rent
£1,339 p/m (Q2 average)
Annual growth (Q2 2025 vs Q2 2024): +7.0%
Quarter-on-quarter (vs Q1 2025): +1.0%
Market Pulse
- Fastest Q2 annual price growth: North East +6.0%, Northern Ireland +5.7%, Scotland +4.8%.
- London Q2 prices: £562,000 (YoY +1.6%).
“ONS data shows what many already feel; buying a home is harder than ever – especially for first-time buyers. Renting makes it tough to save for a deposit, and without the advantage of equity from an existing property, first-time buyers are left relying solely on savings that need to go further each year to get on the property ladder.”
Sales Market Commentary
The UK housing market remained resilient through Q2 2025. The average UK house price rose to £265,667, up 2.8% on the year. Regional momentum varies: affordability-driven regions continue to outpace the South, while London shows modest annual growth.
We expect demand to remain steady into H2 2025, with affordability supported by easing inflation and the prospect of lower borrowing costs. That said, quarterly price movements were mixed, with a slight -0.6% dip versus Q1.
Q2 2025 Regional Prices & Annual Change
(scroll right in mobile devices)
| Region | Q2 2025 Avg Price | YoY (vs Q2 2024) |
|---|---|---|
| United Kingdom | £265,667 | +2.8% |
| England | £287,333 | +2.5% |
| Wales | £208,333 | +3.6% |
| Scotland | £189,333 | +4.8% |
| Northern Ireland | £185,000 | +5.7% |
| London | £562,000 | +1.6% |
| South East | £379,333 | +2.1% |
| South West | £299,333 | +0.6% |
| East of England | £333,333 | +2.2% |
| East Midlands | £236,333 | +3.1% |
| West Midlands | £242,333 | +2.5% |
| North West | £207,333 | +3.0% |
| Yorkshire & The Humber | £201,667 | +3.6% |
| North East | £158,667 | +6.0% |
Rental Market Commentary
Rental conditions remain tight, though early signs point to gradual rebalancing. The UK’s Q2 average rent reached £1,339 per month, up 7.0% year-on-year. England recorded the highest averages (£1,394), Scotland stabilised around £999, and Wales rose to approximately £799. Northern Ireland’s latest available figure (May 2025) was £855, up from £803 in Q2 2024 on average (approx. +7.1% YoY to May).
Q2 2025 Rent Snapshot (Monthly Averages)
- UK: £1,339 | YoY: +7.0%
- England: £1,394 | YoY: +7.1%
- Wales: £799 | YoY: +8.5%
- Scotland: £999 | YoY: +4.6%
- Northern Ireland: £855 (May 2025) | YoY to May: +6.6–7.1%
Note: NI June 2025 rent data not yet available; NI figures reflect latest available month and Q2 2024 averages for YoY comparison.
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