New official data confirms that the UK housing market continues to demonstrate resilience, with average property prices posting a solid annual gain despite economic headwinds.
Regional Price Variations and Rental Trends
The headline figure shows that the average UK house price reached £272,000 in September 2025, marking a 2.6% annual increase. This represents a slight moderation from the 3.1% rise recorded in the 12 months to August 2025.
A closer look at the nations reveals distinct regional performances. In England, the average price rose by 2% to £293,000. Wales saw a 2.7% increase, bringing its average to £209,000. Scotland experienced the strongest growth among the nations, with prices surging 5.3% to an average of £194,000.
The rental market also remained active. Average monthly private rents across the UK increased by 5.0% to £1,360 in the year to October 2025. In England, rents hit £1,416 (a 5% rise), while Wales saw a 6.7% jump to £817. Scotland's rents increased by 3.4% to £1,008. Northern Ireland, with data to August 2025, recorded a 6.6% increase to £866.
Expert Analysis: A Market of Resilience and Adjustment
Industry experts are interpreting the data as a sign of underlying market strength rather than weakness. Darryl Dhoffer, Founder of Bedford-based The Mortgage Geezer, was unequivocal in his assessment.
"Despite high interest rates, high inflation and an economy running on fumes, the property market has shown resilience in 2025," Dhoffer stated. "The structural undersupply of property is underpinning the market and preventing prices from falling further."
He highlighted that growth is now being driven by the North and Midlands, while southern regions remain flat. He also pointed to robust pay growth as a key factor supporting affordability.
Addressing those forecasting a dramatic downturn, Dhoffer added, "Those predicting a crash have once again been proved wrong, as the market is simply adjusting to a slower pace, not collapsing. A sharp house price correction remains unlikely in the near term."
Looking Ahead to 2026 and the Budget
Omer Mehmet, Managing Director at Welling-based Trinity Finance, noted that buyer apprehension ahead of the pending Autumn Budget has cooled the pace of growth. However, he sees potential for a rebound.
"With inflation coming down today, the chances of a rate cut in December have improved," Mehmet said. "That has the potential to see 2026 start on a strong note but equally what is announced in the Budget next week will be key."
The overall picture is one of a property market navigating economic challenges through moderation and regional rebalancing, rather than the steep decline some had feared.
