Average UK house price annual inflation was 3.9% in the 12 months to May, up from 3.6% in April, according to the latest UK House Price Index from the Land Registry.
The average UK house price was £269,000 in May, which is £10,000 higher than 12 months ago.
Average house prices increased by 3.4% in England, 5.1% in Wales, 6.4% in Scotland and 9.5% in Northern Ireland.
Average UK house prices increased by 1.1% between April and May, compared with an increase of 0.8% in the same period 12 months ago. On a seasonally adjusted basis, average house prices in the UK increased by 0.7% between April and May.
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 6.3% in the 12 months to May. The South West was the English region with the lowest annual inflation, where prices increased by 1.9%.
Hamza Behzad, business development director at Finova, said: “As the market steers into the second half of 2025, the wider UK housing market has once again flexed its muscles, remaining strong despite an everchanging economic landscape. The post-tax break slowdown has not bitten into demand, and buyer activity is healthy. The much-anticipated Mortgage Guarantee scheme will further boost activity, empowering first-time buyers to make that crucial first step onto the ladder.
“Across the market, we are seeing an appetite for a slight easing in regulations. If managed appropriately, a controlled increase in risk thresholds could make it much easier for first-time buyers to afford a mortgage. The market is changing, and even in a time of relative stability, lenders and brokers must work together to offer flexible and forward-thinking options to buyers. There is a lot of innovation in the market, and with the return of 100% LTV products to the market, the ability to offer quick and well-assessed decisions at speed will be a crucial differentiator for success.”
Jason Tebb, president of OnTheMarket, said: “Although historic, the data shows house values continued to rise on an annual basis in May, with the average property price £10,000 higher than a year ago, even though affordability remains a challenge and is keeping prices in check to an extent.
"The market continues to demonstrate remarkable resilience, assisted by four interest rate reductions since last August. These cuts, with the suggestion of more to come, have boosted buyer and seller confidence, increasing activity in the market and benefiting the wider economy. The unexpected increase in inflation to 3.6 per cent in June may persuade the Bank to pause with regard to further reductions, although much depends on other economic data such as the jobs market.
"With mortgage lending rules being relaxed to assist buyers with affordability and boost first-time buyer numbers, there is recognition that it is a struggle to get on the housing ladder but only time will tell if these measures are enough to make a real difference."
Nathan Emerson, CEO of Propertymark, added: “In some respects, rising house prices shows as an indicator of growth in the general housing market and stability in some people’s finances as some banks are now cutting their mortgage rates to further stimulate the housing market. However, there is still more work to do to boost Britain’s housing market and make homeownership a realistic aspiration for those looking to step onto the property ladder for the first time.
“There are many reports suggesting that the stamp duty hikes commencing from April this year are having a negative effect as some people are paying between £6,000-£12,000 more in charges, and there are even calls for more flexible stamp duty payment options too. Though this tax was increased to help balance the UK’s finances, other reports suggest these increases are deterring aspiring homeowners. The UK Government should listen to those working in the industry who are noticing the negative consequences this policy is having.”
