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If you're thinking of moving home or are due to remortgage in the new year, you're likely to be wondering what will happen to house prices.
2024 has been a relatively slow year for the property market, with mortgage rates gradually dropping and prices rising slightly in most areas.
Experts expect momentum to pick up further in 2025, but a house price boom seems highly unlikely. Read on to find out what to expect from the new year.
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Which? tracks five house price indices each month, and all have recorded price increases over the past year.
The Land Registry's UK House Price Index is the most accurate, as it's based on completed property sales. It currently shows a 2.9% year-on-year increase in prices.
Halifax and Nationwide publish data based on mortgage lending. Halifax reports a 3.9% annual increase in prices, while Nationwide records a 3.7% rise.
Finally, the property websites Rightmove and Zoopla report figures based on the asking prices of homes listed for sale by estate agents.
Rightmove currently reports a 1.2% annual rise in house prices, and Zoopla a 1% increase.
These indices are useful in giving us an indication of what's happening in the property market, but we won't have final figures for 2024 until early in the new year.
It's been a quiet year in terms of property transactions, although in October the number of sales in a month passed 100,000 for the first time this year.
Zoopla says the small increase in prices in 2024 has been due to rising incomes and falling mortgage rates.
However, the cost of borrowing remains a significant barrier to values rising higher in the short term.
The average rate on a two-year fixed mortgage has fallen from 5.93% to 5.52% since January, but high rates are still causing affordability challenges for many prospective homebuyers.
Predicting house prices is notoriously tricky, and this year's data has reinforced that.
Several experts predicted that house prices would fall in 2024. Rightmove anticipated a small drop of 1%, while Halifax forecasted a fall of between 2% and 4%.
The estate agent Knight Frank bucked the trend and predicted a 3% increase.
And with the Land Registry currently reporting 2.9% annual growth, this appears to have been the most accurate prediction as we approach the end of the year.
There is a consensus among experts that house prices will rise in 2025, with predictions far more bullish than a year ago.
Estate agent Savills and website Rightmove both forecast increases of 4%, while Knight Frank and Zoopla predict more modest growth of 2.5%.
News agency Reuters asked 21 UK housing experts for their predictions in November.
On average, experts predicted a 3.1% rise in 2025, with individual forecasts ranging from 2% to 6%.
Land Registry data shows the average UK house price is currently £291,828.
There's a chance this figure could pass £300,000 for the first time in 2025, but this would require a price increase of 2.8%.
The table below shows how different price rises could affect the UK average house price.
| Price increase | Average house price |
| 1% | £294,746 |
| 2% | £297,664 |
| 3% | £300,582 |
| 4% | £303,500 |
| 5% | £306,418 |
| 6% | £309,336 |
Experts predict that growth will vary across regions in 2025.
Zoopla forecasts that house prices in northern England, the Midlands, Scotland and Wales will outperform the UK average next year, but southern England will see slower growth.
Savills forecasts above-average price rises of 5% in the North East, North West, Yorkshire and Scotland.
If you're thinking of selling, the first step is to invite three local estate agents to value your property.
This will give you an up-to-date idea of what your home might be worth in the current market, although you shouldn't take these estimates as a guarantee.
If you're just curious, pop your postcode into sites such as Rightmove and Zoopla to see what homes near you are currently listed for. They will also show you how long a property has been on the market and whether its price has been reduced.
For actual sale prices, you'll need to search the Land Registry's price-paid data. This allows you to look up sold prices in your area, with the limitation that any homes sold very recently probably won't yet have been added to the database.
To stay updated on what's happening to house prices throughout 2025, check out our guide, which is regularly updated with the latest figures.
If you're looking to apply for a mortgage or are due to remortgage your home, you can find out which lenders currently offer the cheapest mortgage deals in our best mortgage rates guide.
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