UK Property Prices Surge 3.7% Driven by Larger Homes

Research from Halifax indicates that demand for larger homes has significantly driven UK property price growth over the past year, with overall annual growth reaching 3.7% in January 2025, up from just 1.0% at the start of 2024. Terraced houses saw the highest increase at 4.5%, while detached properties rose by 4.1%, and semi-detached homes by 3.8%. In contrast, flats lagged behind with a growth of only 3.2%. The average property price now stands at £294,818, surpassing the previous peak during the pandemic-era boom. This trend has made it easier for first-time buyers to enter the market, but harder for them to upgrade to larger properties. The analysis also highlighted regional variations, with the North East experiencing the strongest growth in flat prices and terraced houses, while the East Midlands saw a slight decline.