Confidence grows as UK property market strengthens in 2025

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The UK property market in 2025 is showing surprising resilience. Despite interest rate pressures and cost-of-living challenges, both house prices and rents are rising steadily. Average house prices increased by 2.8% over the 12 months to July 2025, pushing the average property value to around £270,000. Office for National Statistics+2GOV.UK+2

Rents are also climbing. Private sector rents rose by 5.7% in the year to August 2025, putting the average UK private rent at about £1,348/month. In England, average rent has reached £1,403, up 5.8% year-on-year. Office for National Statistics

Some regions are outperforming the rest: the North East of England saw the strongest house price inflation—7.9% year-on-year as of July 2025. Meanwhile London is seeing much more modest growth, with annual house price rises of around 0.7%. GOV.UK+2Office for National Statistics+2

New lets are behaving a little differently: the average rent for new lets is about £1,301/month (July 2025) in the UK, with annual growth of 2.4%—one of the lowest levels seen in recent years. Zoopla

Looking ahead, analysts expect more moderate but stable growth. The CBRE UK mid-year outlook suggests that rising rental values will be a major driver of capital growth. Meanwhile, Cushman & Wakefield forecast rental increases at around 3% per annum over the medium term. CBRE Media Assets+1

Overall, while growth is slowing compared to peaks of recent years, the fundamentals remain solid: undersupply of housing, consistent demand, and regions outside London showing especially strong performance. For buyers, investors, renters—it’s a market that’s not booming crazily, but one that’s moving steadily upward.