The UK housing market continues to show resilience, with house prices experiencing steady growth.
In February, average house prices increased by 0.4% from the previous month, reaching £270,493—marking a 3.9% annual increase. This rise has been partly attributed to buyers rushing to finalise purchases ahead of the April stamp duty changes, which will reduce the tax-exemption threshold for first-time buyers from £425,000 to £300,000.
Looking ahead, experts anticipate continued price growth in the coming years. Forecasts suggest a 4% rise across the UK in 2025, driven by improving affordability as mortgage rates stabilise and more buyers return to the market. Longer-term projections indicate that house prices could rise by as much as 23.4% by 2029, reflecting growing demand and an ongoing shortage of housing supply.
Market analysts also predict a steady increase in property values beyond 2025. Expectations include a 2.5% rise in 2025, followed by 3% in 2026 and 3.5% in 2027. These figures highlight a sustained upward trend, albeit at a more moderate pace than the sharp increases seen in previous years. The easing of mortgage rates will play a crucial role in sustaining demand, making homeownership more accessible for buyers who were previously priced out of the market.
Regional variations will continue to shape market trends, with stronger growth anticipated in areas undergoing regeneration and infrastructure improvements. Government policies, such as housing supply initiatives and potential adjustments to property taxation, will also be key factors influencing the market.
While affordability challenges remain, the outlook for UK house prices remains positive. With mortgage rates stabilising and demand persisting, the property market is set for steady growth in the years ahead.
