London has emerged as the only English region to see a year‑on‑year decline in property values as average UK house prices continue to climb. According to the Office for National Statistics (ONS), nationwide prices rose by 3% in the 12 months to August, whereas in the capital the cost of a house fell by 0.3%.
The average UK home was valued at £273,000 in August. Regionally, prices climbed to £296,000 in England (up 2.9%), £211,000 in Wales (2%), and £194,000 in Scotland (4%). Northern Ireland, measured on a quarterly basis, posted the strongest growth, with average house prices rising by 5.5% to £185,000 in the second quarter of 2025.
The North East recorded the highest regional house price inflation in England, with a 6.6% annual rise to August, though this was down from 6.9% in July. At the other end of the spectrum, London saw prices decline 0.3% year-on-year, reversing a 1.3% increase in July.
“The North East once again showed the highest annual increase and London is the only English region showing an annual fall,” said Aimee North, head of housing market indices at the ONS.
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Responding to the figures, Propertymark CEO Nathan Emerson mentioned the challenges facing homeowners and buyers.
“Despite an economy that continues to throw challenges, especially to those on the housing ladder, it is positive to see people witness growth in their equity when looking at property,” he said. “Consumers have battled a very unfavourable combination of high inflation and interest rates over the last few years, and there remain potential uncertainties ahead in many cases.”
He added that attention would now turn to next month’s autumn budget. “There is widespread speculation that stamp duty across England and Northern Ireland may be scrapped and potentially replaced with an alternative. Depending on what is proposed and implemented, there is potential to create a much smoother-flowing property marketplace.
“However, it is important that any new system helps remove barriers to purchasing a property for those who aspire to.”
Alongside cooling house prices, rental inflation across the UK also showed signs of easing. Average private rents rose 5.5% in the 12 months to September to £1,354 per month, a slowdown from the 5.7% increase seen in August, and the ninth consecutive month of easing growth.
England mirrored the UK-wide trend, with rents up 5.5% year-on-year to £1,410, down from a 5.8% rise in August. Rents in Wales climbed 7.1% to £815, while Scotland saw a more modest 3.4% increase to £1,004. Northern Ireland recorded a 7.1% rise to £865, based on data for the 12 months to July.