House prices across the UK are higher than they were a year ago in every region and are forecasted to continue rising in 2025, despite potential dampening effects from recent budget changes.
According to property search website Zoopla, average house prices have increased by 1.5 per cent over the past 12 months.
A pronounced north-south divide has emerged, with prices in northern regions—generally more affordable—rising significantly faster than those in and around London, where properties are pricier and more sensitive to interest rate fluctuations. In Northern Ireland, house prices have surged by 6.3 per cent compared to last year, while the southeast of England has seen a modest gain of only 0.3 per cent.
Zoopla anticipates a 2.5 per cent increase in house prices over the course of 2025, aligning with predictions from other industry analysts. Richard Donnell, executive director at Zoopla, commented that “income growth has been stronger than we expected” this year. Coupled with a retreat in mortgage rates, this has improved affordability for prospective buyers.
In addition to driving up prices in 2025, Donnell estimates that there will be 1.15 million housing transactions—a 5 per cent increase compared to this year. However, affordability pressures are expected to persist in the southeast and London, with southern housing markets likely to continue lagging behind their northern counterparts.
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