UK house price growth slows in July - ONS
By Josh White
Date: Wednesday 17 Sep 2025
(Sharecast News) - UK house price growth slowed in July even as private rents continued to rise sharply, underscoring mounting affordability pressures across the housing market, according to fresh figures from the Office for National Statistics.
The ONS said average UK house prices rose 2.8% in the year to July to £270,000, easing from 3.6% annual growth in June.
Prices increased by 2.7% to £292,000 in England, 2.0% to £209,000 in Wales, and 3.3% to £192,000 in Scotland.
In Northern Ireland, where data is published quarterly, the average house price was £185,000 in the second quarter, up 5.5% from a year earlier.
The North East recorded the fastest house price inflation of any English region at 7.9%, while London saw the weakest growth at 0.7%.
Property market analysts said the slowdown reflected the impact of high borrowing costs and stretched affordability, despite last month's cut to the Bank of England's base rate.
Jason Tebb, president of OnTheMarket, said the data showed "house values continued to rise on an annual basis in July, with the average property price £8,000 higher than a year ago.
"However, affordability continues to be a challenge and is keeping prices in check."
Private rents rose more sharply than house prices, though their pace of growth also eased slightly.
Average UK monthly private rents increased by 5.7% in the year to August to £1,348, down from 5.9% annual growth in July.
Rents reached £1,403 in England, up 5.8% on the year, while rising 7.8% to £811 in Wales and 3.5% to £1,002 in Scotland.
In Northern Ireland, average rents were £860 in June, up 7.2% on the year.
The North East had the fastest rent growth among English regions at 9.2%, while Yorkshire and the Humber saw the slowest at 3.4%.
Analysts warned that continued pressure from high rents and mortgage costs risked deepening strains on households and limiting housing market activity.
The data was published a day before the Bank of England's interest rate decision, with markets expecting rates to remain on hold.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said the figures could encourage policymakers "to monitor the situation a little longer before committing to the next rate reduction," noting that lenders have "plenty of liquidity and are keen to lend" but are making "small tweaks upwards" to mortgage rates.
Reporting by Josh White for Sharecast.com.
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