Property values in England and Wales rose by 0.1% in January 2025, marking the end of a four-month slump, according to the latest e.surv and Acadata house price index.
While average annual prices are still 3% lower than they were at this point last year, analysts say the modest uptick signals a tentative turning point, backed by improving wage growth and a surge in first-time buyer activity since April’s stamp duty change.
Northern bounce, southern lag
Persistent affordability challenges and higher mortgage rates continue to weigh on London and the South East, where property values remain subdued. In contrast, the North East and North West both recorded gains, reflecting growing confidence among buyers in those areas. Yorkshire and the Humber, the Midlands, and Wales are also showing signs of stabilisation.
Rob Owens, head of research at e.surv, notes that the average property price across England and Wales nudged up to £352,300 in January, still about £25,000 below the highs seen in late 2022. “The northern regions and Wales are bouncing back,” Owens says, “whereas London’s lofty price tags and stretched affordability keep a lid on overall recovery.”
He adds that recent methodology updates—factoring in a higher proportion of flats in the property mix—have slightly lowered the reported average price but haven’t affected the overall trend. With the Bank of England cutting its base rate to 4.5% and a continued shortage of housing stock, experts suggest the market could gather further momentum in the coming months.
