UK House Price Growth Accelerates to 4.9% as Rental Inflation Slows

Easing mortgage rates and a rush to beat April's stamp duty changes drive market activity, while affordability challenges persist.

Annual house price growth reached 4.9% in January 2025, up from 4.6% in December 2024, with the average price in England at £291,000.
Rental inflation slowed to 8.1% annually in February 2025, down from 8.7% in January, with average monthly rent at £1,326.
The North East of England led house price growth at 9.1%, while London saw the weakest increase at 2.3%.
The upcoming April 2025 stamp duty changes, which will reduce 'nil rate' bands, have spurred a surge in transactions.
Easing inflation, now at 2.8%, and improving mortgage rates are fostering cautious optimism for market stability, though affordability remains a concern.