Increased Residential Property Values: A £9,000 surge over the past year, with homes in the North East region appreciating almost ten times quicker than those in London.
UK House Prices Show Regional Differences in Mid-2025
Recent data from the Office for National Statistics (ONS) and the Royal Institution of Chartered Surveyors (RICS) reveal a mixed but regionally nuanced trend in UK house price growth as of mid-2025.
According to the ONS UK House Price Index for June 2025, the average property price in the UK has increased by 3.7% annually, reaching £269,000. The North East region recorded the highest annual growth of 7.8%, while London saw the lowest annual inflation at 0.8%. Other notable regional increases include Scotland with 5.9%, Northern Ireland at 5.5%, Wales 2.6%, and England overall 3.3% [1][3][5].
However, the RICS latest survey suggests a softening market sentiment, with a national net balance of -13% in house price growth, indicating a slight downward adjustment in prices. The survey reveals regional differences: Northern Ireland, Scotland, and the North West of England are still experiencing price rises, while areas like East Anglia are seeing more pronounced price declines. This price softening is attributed to reduced buyer confidence due to inflation pressures and difficulties for first-time buyers in saving deposits, as well as an increase in supply [2][4].
| Region | ONS Annual House Price Growth to June 2025 | RICS Reported Price Movement | |--------------------|---------------------------------------------|----------------------------------------| | North East | +7.8% | Continuing growth | | Scotland | +5.9% | Continuing growth | | Northern Ireland | +5.5% | Continuing growth | | North West England | +5% | Continuing growth | | London | +0.8% | Price declines or minimal growth | | East Anglia | (not specified by ONS but lower) | More significant price falls | | Wales | +2.6% | Mixed, likely softening | | England overall | +3.3% | Mixed, tending toward flatlining or small declines |
The ONS data is based on sold prices that were agreed on in the months prior to June, while the RICS survey captures more immediate market conditions. This divergence likely relates to timing differences and the survey sentiment reflecting more current market trends [1][2][3][4][5].
In London, the average property price is £561,309, with only a 0.8% year-on-year increase. In contrast, the average home in the North West of England is worth £212,057, having risen by 5% over the past year. The average home in the South East and South West is £383,486 and £301,660, respectively, with annual growth of 2.8% and 1.5%, respectively.
If you find a property you like but aren't sure about the price, it's recommended to call the agent to gauge the seller's position before viewing. Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, warns that well-priced homes may be withdrawn or unsold due to buyers holding back [6].
Looking ahead, more Rics members see house prices falling over the coming three months than those who think prices will rise. A more forward-looking survey by Rics last week painted a weaker picture of the state of the property market [7]. Jonathan Hopper, chief executive of buying agent Garrington Property Finders, states that inflation is brisk in Scotland and Northern Ireland [8].
The ONS data continues to show that prices are rising the most in more affordable parts of Britain, suggesting that the property market may be becoming more affordable for first-time buyers in these regions [1]. However, the RICS survey highlights the challenges faced by buyers in southern England, where prices are softening and supply is increasing.
References: [1] Office for National Statistics (2025). UK House Price Index, June 2025 [2] Royal Institution of Chartered Surveyors (2025). Residential Market Survey – July 2025 [3] Scottish Government (2025). House Price Index, June 2025 [4] Northern Ireland Statistics and Research Agency (2025). House Price Index, June 2025 [5] Land Registry (2025). UK House Price Index, June 2025 [6] Antony Roberts (2025). Interview with Amy Reynolds, head of sales [7] Royal Institution of Chartered Surveyors (2025). Residential Market Survey – August 2025 [8] Garrington Property Finders (2025). Interview with Jonathan Hopper, chief executive
