UK House Prices Rise 5.4%, Rents Up 7.7% in 2025

UK house prices have seen a notable increase of 5.4% over the year leading to February 2025, with the average home now valued at £268,000. This growth is reflected across various regions, with England experiencing a 5.3% rise, Wales at 4.1%, and Scotland leading at 5.7%. The rental market is also on the rise, with private rents climbing by 7.7% year-on-year, reaching an average of £1,332 per month. Although this marks a slight slowdown from previous months, disparities remain, particularly in the North East where rents surged by 9.4%. Experts suggest that improved mortgage affordability, attributed to recent interest rate cuts, is driving both house price and rental increases. The overall property market is showing signs of recovery, reversing previous downturns and indicating a robust environment for buyers and sellers alike.