UK house prices rose by 3.9% in the year to May 2025, pushing the national average to £269,000—£10,000 more than this time last year—according to the latest UK House Price Index from the ONS. The market also saw a sharp 1.1% increase in prices between April and May, recovering strongly from the -2.7% drop recorded the previous month.
While transactions and buyer activity remain below historic norms, the data paints a clear picture: demand is holding up, and price growth continues—especially in areas like Northern Ireland, where values jumped 9.5% annually. For landlords, this signals resilience, not retreat.
North East and Midlands lead price gains
Landlords looking beyond London may take particular interest in regional trends. In England, the North East topped the charts with a 6.3% annual increase, closely followed by Yorkshire and the Humber (5.1%) and the East Midlands (5.0%). Even in Wales and Scotland, where policy changes have made landlords more cautious, prices rose 5.1% and 6.4% respectively.
As Darrell Walker, group sales director at Chetwood Bank, put it: “Another month of annual house price growth — and a return to monthly growth — underlines the resilience in the market.” He noted that while momentum has slowed, savvy investors continue to target properties that offer “short-term value with long-term potential.”
Nathan Emerson, CEO of Propertymark, echoed that view, pointing out that the “rising house prices show growth in the general housing market and stability in some people’s finances.” But he also sounded a warning: “There is still more work to do to boost Britain’s housing market… The UK Government should listen to those working in the industry who are noticing the negative consequences” of recent stamp duty increases.
Landlords face shifting ground, but remain key to stability
Despite some media focus on declining rental affordability, multiple experts argue that landlords are not to blame—but are, in fact, essential to keeping the market moving.
Louisa Sedgwick of Paragon Bank was clear: “The cooling of rent inflation is a step in the right direction, but… rents are still increasing at a faster rate than they were before the pandemic.” She pointed to long-term supply constraints and added: “Creating the conditions to enable landlords to invest… will help limit rent inflation.”
From a lending perspective, Alex Upton of Hampshire Trust Bank acknowledged the challenges but noted landlords are adapting. “Some have decided to exit the sector altogether, which only increases pressure on available stock,” she said. “Others are exploring how to adapt… focusing on quality assets.” She warned that the looming Renters’ Rights Bill is already pushing landlords to rethink their strategies, saying, “Clear advice matters.”
Meanwhile, Richard Donnell of Zoopla noted that current low house price inflation is actually “positive for the market” because it encourages both buyers and sellers. He added: “There is just enough price growth… without the fear that prices may fall or suddenly surge higher.”
Transactions bounce back post-stamp duty change
Though overall property transactions were down 11.8% year-on-year, there was a striking 25.1% monthly increase from April to May—most notably in England and Northern Ireland, which saw 52.0% and 51.2% jumps, respectively. This suggests the April 1 stamp duty changes may have temporarily delayed deals but not suppressed them entirely.
Chris Storey of Atom Bank remarked, “The impact of the end of the Stamp Duty holiday is clear… but reductions in borrowing costs are making would-be purchasers more confident.” With mortgage approvals rising to 63,000 in May—the first increase since December—landlords may find buyer competition strengthening, especially with more mortgage products available now than at any time since 2007.
Still, Storey cautioned that first-time buyers could be squeezed out unless lending remains flexible. “Further house price growth threatens to make life hard for those who have been unable to save a sizeable deposit,” he said, highlighting the importance of government-backed support and lender willingness.
Landlords who’ve stayed the course through recent tax hikes, regulatory upheaval, and public criticism may finally see their patience pay off. With steady house price growth, improved mortgage accessibility, and early signs of transaction volume recovery, the private rental sector remains a pillar of the housing market.
UK House Price Index summary: May 2025 was published today.
