UK House Prices Up 3.5% in May 2025

Data released by Nationwide suggests that UK house prices were up 3.5% in May compared with May 2024’s prices. This represents a slight increase on April’s 3.4% annual house price growth. These numbers are seasonally adjusted. In other words, they account for regular market trends which see an increase or decrease in activity during certain times of the year.  

The property market saw a particular flurry of activity in early 2025. March was marked by a final push to complete property transactions before the new stamp duty rates took effect in April 2025. Notably, the changes saw the zero rate SDLT threshold fall from £250,000 to £125,000, less than half the UK average house price. 

Following the rush to beat the changeover in rates, a drop-off in sales was anticipated for April. However, buyers have started returning to the property market, and there has been a tentative uptick in property prices throughout May. The mortgage lender’s analysis sets the current average house price at £273,427 in May 2025, up from £270,752 the previous month. 

Nationwide’s chief economist, Robert Gardner, said: “Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.” 

While there is still a fair amount of uncertainty, UK buyers are finding themselves in position to buy. Nationwide’s chief economist explains the contributing factors, at a glance. 

Gardner elaborates: “Unemployment remains low, earnings are rising at a healthy pace (even after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we, and most other analysts, expect.” 

Those who plan on selling a property after several years of ownership may also be interested to note the longer-term data. According to Nationwide’s figures, prices have risen by 18% in urban areas over the past 5 years.  

The outlook can always change, but this forms a snapshot of the current picture. 

Read more on Reuters and Nationwide.