Property owners holding onto profits of approximately £80,000 accumulated over a span of 20 years
UK House Prices Continue to Rise, with the North East Leading the Way
UK house prices are experiencing a steady increase, with an annual growth of 3.7% as of June 2025, according to recent data. This growth is accompanied by monthly rises of around 1.4% from May to June 2025. The average UK house price currently stands at approximately £269,000, although there are regional variations.
The North East of England has seen the largest house price increases over the past 20 years, with a staggering 7.8% annual rise as of June 2025. Other regions such as the North West, East Midlands, and West Midlands have also experienced notable growth, albeit at lower rates.
Despite challenges related to affordability, including higher mortgage rates and inflation pressures, the UK housing market remains resilient. Mortgage rates, while still elevated compared to post-pandemic lows, have become more competitive following reductions in the Bank of England's base rates in 2025.
Demand and a chronic shortage of supply have supported steady price growth, particularly in northern regions where prices are generally more affordable compared to London and the South East. London continues to have the highest average prices, but its growth rates are slower compared to northern regions.
Over the past 20 years, while central London and the South East had the highest nominal price levels, regions in the North of England have often recorded the fastest percentage growth due to lower starting prices and increasing demand for affordable housing options with better value for money.
In Wales, house prices rose 3.5% to reach £223,000, while in Scotland, they rose 5.4% to an average of £200,000. In Northern Ireland, average house prices jumped 6.4% over the past year to reach £185,000.
On the other hand, the South West of England experienced the slowest house price inflation, with prices rising by just 0.8%. Homeowners who bought their property in the last 20 years have an average gain of £80,000, according to Zoopla.
Notably, high-value areas and commuter hotspots have seen the largest property gains in the last 20 years. For instance, homes in Richmond upon Thames, a London suburb, have experienced significant value gains. Four-fifths of homes in the Cotswolds and Richmond upon Thames have increased in value by £65,000 in the last 20 years.
For those looking to purchase a property, it may be more cost-effective to consider new towns. The average home in a new town is £300,656, while the UK average is £346,995, according to Halifax.
Toby Leek, president of Propertymark, commented on the positive long-term trend of house price growth, despite events like the financial crash of 2008 and the coronavirus pandemic. For many home buyers, it remains upbeat news that we continue to witness robust house price growth.
In the UK, the North East region is leading the housing market with an impressive 7.8% annual house price increase. (property, housing-market)
Furthermore, despite challenges in affordability, the UK real-estate market shows resilience, with the average UK house price at around £269,000 and potential investment opportunities found in new towns that offer more cost-effective options. (finance, investing, real-estate)
