Increase in housing prices in Great Britain in July

• Housing prices increased by 0.6% in July 2025
• The average price of a home reached £272,664
• Market activity is supported by high rates of mortgage lending

In July 2025, housing prices in Great Britain increased by 0.6% compared to the previous month, recovering after a decline of 0.9% in June. The average price of a property reached £272,664, which is a result of market improvement following the end of tax relief on the stamp duty.

According to Nationwide Building Society, the annual growth rate of housing prices also increased to 2.4% in July, compared to 2.1% in June. In June, 64,200 mortgages were approved, which indicates active market engagement.

Chief economist at Nationwide, Robert Gardner, noted that the conditions for potential buyers remain favorable. Despite high spending on housing, the ratio of house prices to average income has decreased to 5.75 times, which is the lowest indicator in the last decade. This facilitates obtaining mortgages, especially with improved access to mortgages with high loan-to-value ratios.

However, interest rates on variable-rate mortgages remain high. The average rate for a five-year fixed-rate mortgage for borrowers with a 25% deposit exceeds three times the level observed in the summer of 2021.

Experts expect that a decrease in interest rates, which may occur in the coming months, will contribute to further growth in market activity in the housing sector. At the same time, home sales increased by 13% in June, indicating positive trends in the market.

Tags: Europe/Economy