HMRC data showed 96,000 transactions in July 2025, 4.3% higher than July 2024.
Average UK house price inflation slowed to 2.8% in the 12 months to July 2025, down from a revised 3.6% in June, according to provisional figures released this morning by the Office for National Statistics. The average price reached £270,000, £8,000 higher than a year earlier.
National and regional breakdown
House price growth varied across the UK during July, with average prices in England rising 2.7% to £292,000. Wales recorded a 2.0% increase to £209,000, Scotland saw a 3.3% rise to £192,000, and Northern Ireland’s average reached £185,000, up 5.5% in the year to Q2 2025.
On a non-seasonally adjusted basis, UK house prices rose 0.3% between June and July 2025, compared with 1.1% in the same period a year earlier. After seasonal adjustment, prices fell 0.7% over the month.
Across English regions, the North East recorded the highest annual growth at 7.9%, while London showed the lowest, with prices rising 0.7%.
The Royal Institution of Chartered Surveyors’ July 2025 UK Residential Market Survey noted that buyer demand and agreed sales slipped into negative territory, with house prices easing nationally.
Transaction volumes were firmer. HMRC reported that 96,000 residential properties worth £40,000 or more changed hands in July 2025 on a seasonally adjusted basis, 4.3% higher than a year earlier. Compared with June 2025, sales volumes increased 1.1%. On a non-seasonally adjusted basis, activity varied: up 6.2% in England, down 6.7% in Scotland, up 4.5% in Wales and down 4.7% in Northern Ireland.
Jonathan Samuels, CEO of Octane Capital, observed: “The housing market is holding steady, with house prices remaining on an upward trajectory, albeit a less pronounced one than we’ve seen in recent years. Improvements to the mortgage landscape have been vital in driving this renewed momentum, with buyers benefiting from greater product availability and more flexible eligibility criteria. The expectation is that interest rates will be held tomorrow and whilst this won’t light the touch paper in terms of driving buyer activity, it will bring reassurance in the short term by providing ongoing certainty.”
Nathan Emerson, CEO of Propertymark, commented: “It is positive to see the housing market progressing forward in strength. As we move towards the autumn months, hopefully this momentum will continue. There continue to be two factors that may weigh heavily on consumers’ minds as they decide on what to do next regarding potentially approaching the buying and selling process."
"Any decision that the Bank of England makes regarding base rates will determine whether people can realistically afford to relocate, and the uncertainty about potential further Stamp Duty restructuring may impact those moving house in England and Northern Ireland. Though we have clarification that the Budget will take place on 26 November 2025, this may cause people to delay their next house move in the meantime. For some, however, these factors will not impact their decisions due to the importance and urgency of their home move and may be able to more easily absorb any additional financial constraints to facilitate a home move.”
