The average UK house price could rise past the £300,000 threshold in 2025, driven by increased buyer demand and its impact on developers.
According to the forecast by West One Loans, which collated UK house price forecasts for 2025, predicted house price increases ranged from 1.1% to around 4.1%.
The firm analysed current and historical government data and estimated that the average UK house price, seasonally adjusted, could climb by 3.5-3.9% over the course of the year.
Consequently, the average UK house price at the end of this year could range from £297,625 to £303,913.
| UK house price predictions and forecasts for 2025 | |||
| Category | Name | Prediction/change figure | Sources |
| Lender | Nationwide | 2-4% | Source |
| Lender | Halifax | 0-3% | Source |
| Economic analyst | Centre of Economics and Business Research (CEBR) | 4.1% | Source |
| Economic analyst | Bloomberg Economics | 4% | Source |
| Economic analyst | Pantheon Macroeconomics | 4% | Source |
| Property Portal | Rightmove | 4% | Source |
| Agent | Savills | 4% | Source |
| Agent | JLL | 3.5% | Source |
| Agent | CBRE | 3.5% | Source |
| Agent | Chestertons | 3.4% | Source |
| Agent | Hamptons | 3% | Source |
| Property Portal | Zoopla | 2.5% | Source |
| Agent | Knight Frank | 2.5% | Source |
| Economic analyst | Office for Budget Responsibility (OBR) | 1.1% | Source |
West One Loans said that, as the housing market picks up, property developers “looking to take advantage of improving market conditions need to remain agile enough to move at the same pace in order to maximise the return seen on their investment”.
The firm explained that rising house prices mean developers can “reap the benefits of upward growth further down the line when they do bring their investment to market”.
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West One Loans added that the increase in buyer demand will also allow developers to “release equity in existing schemes at a greater pace and break ground on their next project”, so more homes come to the market.
The report noted that, in the past few years, new build has been “slow to shift” due to the “price premiums” and “affordability constraints”, but as the market “gains momentum”, developed units could “sell at a greater pace”, so developers can release the existing schemes to back new ventures.
West One Loans said the improvement in market conditions could also lead to increased competition, so it was important to be able to move at speed – so short-term lending could play a pivotal role.
The lender noted that it had “already seen a significant uptick in activity across the short-term lending space so far in 2025, as developers have looked to hit the ground running ahead of what is expected to be another year of property market positivity”.
Thomas Cantor, West One Loans’ co-head of short-term finance, said: “The outlook for the year ahead is that the market will continue to improve from the ground made in 2024, and we’ve already seen a strong start to the year from those looking to utilise specialist lenders in order to capitalise on the growing opportunities that are emerging due to current market momentum.
“Many of those now utilising specialist lending are clients who have been dormant for the last couple of years, and this inactivity has largely been down to the slower pace of the new-build market.
“We’ve seen a slowdown with respect to demand for new-build homes and this has meant that developers have seen a great deal of equity tied up in existing developments, which has prevented them from pushing forward on their next project.
“However, this tide is certainly starting to turn and, with the expectation of a more [buoyant] market over the next 12 months, we’re now seeing these clients turn their focus to their next project and look to specialist lending to help get the ball rolling.
“Our ability to allow developers to utilise specialist lending during multiple stages of the journey has been vital in the current market, and we’re also seeing clients value the speed of delivery with respect to this finance, as it allows them to remain agile and capitalise on opportunities in a market where demand is increasing by the day.”
Recent figures on average UK house prices showed that prices reached a high of £299,138 at the start of the year.
