UK house prices have continued to rise into mid-2025, but signs of a slowdown are emerging in key regions, according to ONS figures for July.
While national growth reached 3.9% in the 12 months to May, price pressures are easing in some parts of the country, most notably in London.
This means those looking at buying a house are regaining leverage, and experts warn that while the market remains resilient, it is increasingly price-sensitive.
National growth masks regional cooling
The latest figures from the Office for National Statistics (ONS) show that average UK house prices increased by 3.9% year-on-year in May 2025, reaching £269,000.
However, this top-line figure hides clear regional variations, and in some cases, price reversals. Nowhere is this more apparent than in London, where prices fell by 1.4% in May alone.
Jonathan Hopper, CEO of Garrington Property Finders, notes: “The average price paid for a home in the capital fell by 1.4% in May alone as sellers were forced to cut asking prices or agree to significant discounts in order to get their sale across the line.”
A similar trend is visible in parts of the South East and South West, where an abundance of listings has shifted market power toward buyers. As Hopper explains: “Across southern England we’re seeing lots of high-value homes coming onto the market… giving [buyers] the confidence and clout to negotiate hard on price.”
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While prices are still climbing nationally, the pace of growth is slowing.
April and May saw modest increases compared to earlier in the year, with analysts attributing this to a combination of cautious sentiment, high mortgage costs, and broader economic uncertainty.
Darrell Walker, group sales director at Chetwood Bank, points out that: “The figures show that while prices are edging upwards, momentum has slowed notably since March’s two-year high. It’s a reminder that although market sentiment remains broadly positive, it is still somewhat fragile.”
The Bank of England’s future decisions loom large. With base rate cuts expected later this year, many buyers are holding off, hoping mortgage rates will go down.
At the same time, others are acting quickly, sensing that any potential dip in prices may be short-lived if borrowing costs fall.
A price-sensitive market with power shifting to buyers
Buyers could seize opportunities as house prices fluctuate around the country(Image credit: Getty Images)
A clear theme across multiple housing reports is that the UK property market in 2025 is extremely price-sensitive.
Buyers are more selective, often walking away or negotiating harder when asking prices feel out of step with local demand.
Colleen Babcock, Rightmove’s property expert, said: “May was the busiest month for agreed property sales since 2022, as the market bounced back from a temporary lull… It’s a price-sensitive market right now, with a decade-high number of homes for sale for buyers to choose from.”
This increase in available stock - especially at the higher end - is empowering buyers, even in regions where prices are technically still rising. And in areas like the North East and Scotland, where growth remains stronger, affordability continues to draw interest and demand.
Will house prices go down?
While there’s no evidence of a nationwide price crash in the short term, the signs of deceleration and regional softening are clear.
The combination of more listings, cautious borrowing, and a post-stamp duty adjustment means downside risk exists, particularly in higher-value or over-supplied areas.
The answer to "Will house prices go down?" depends heavily on where you're looking and what the Bank of England does next.
As Darrell Walker concludes: “Much of this reflects how buyers and investors have become more selective, seeking opportunities that balance short-term value with long-term potential.”
The result? A market where prices aren’t falling universally, but where buyers hold more sway than they have in years.
News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.
