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The typical home has risen in value by £9,000 over the past year, according to official figures. The average home is worth £269,079, based on sales data from June, released today by the Office for National Statistics – £100 off the all-time record set in March 2025.
It comes after a 1.4 per cent monthly jump in average prices with big swings recorded in the North East and North West. The ONS data is based on sold prices that will have been agreed on property sales in the months prior to June.
A more forward looking survey by the Royal Institution of Chartered Surveyors last week painted a weaker picture of the state of the property market. It revealed that more Rics members, comprising estate agents and surveyors, reported house prices falling in their areas in July than those that reported prices rising.
Looking ahead, more Rics members see house prices falling over the coming three months than those who think prices will rise. However, over a 12 month timeframe, the majority see prices going higher. The ONS figures, while slightly behind, continue to show that prices are rising the most in more affordable parts of Britain.
Average property prices in the North East are up 7.8 per cent in the 12 months to June, rising to £163,679 on average. Prices in Scotland are up 5.9 per cent to £191,927, while prices in the North West of England are up 5 per cent in that time. The average home there is selling for £212,057.
In Northern Ireland, prices are also up 5.5 per cent over the last 12 months, reaching £185,108 on average. Meanwhile, prices in London are only up 0.8 per cent year-on-year, with the average home in the capital fetching £561,309.
The South East and South West – where average house prices are £383,486 and £301,66o respectively – have also seen below average growth, up 2.8 per cent and 1.5 per cent annually. ‘The dizzying pace of growth seen in parts of northern England is a world away from the modest 0.8 per cent rise recorded in London,’ said Jonathan Hopper, chief executive of buying agent Garrington Property Finders.
‘Prices in the North East are rising nearly 10 times faster than those in the capital, and inflation is brisk in Scotland and Northern Ireland too. ‘At least London is back in growth territory. As recently as May, the average price paid for a home in the capital fell by 1.4 per cent in a month as sellers had to cut asking prices or agree to significant discounts in order to get their sale across the line.
‘Price rises are modest in much of southern England too, and on the front line we’re seeing lots of high-value homes coming onto the market in sought-after areas.’ Hopper says that a glut of homes is putting ‘buyers firmly in the driving seat’ and giving them the ‘confidence and clout to negotiate hard on price.’ However, there is also a warning for those that are perhaps waiting for prices to fall.
‘There are still well-priced homes sitting unsold, often because buyers are holding back,’ said Amy Reynolds, head of sales at Richmond estate agency Antony Roberts. ‘If you’re waiting for prices to drop, you might be right – but the property you want could be withdrawn, nothing suitable may come up, or prices could rebound far faster than they fall. ‘If you see something you like but aren’t sure on the price, call the agent to gauge the seller’s position before you view – far better than hesitating and watching someone else buy it.’
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