House price inflation accelerated last month as growth in rental prices eased back, according to official figures.
The average UK house price increased by 3.7% to £269,000 in the 12 months to June.
The Office for National Statistics (ONS) revealed an uptick in price growth after a 2.7% rise was reported in the 12 months to May.
It comes amid a backdrop of cooling interest rates, which dropped again to 4% earlier this month.
The acceleration comes after price inflation was impacted by changes in stamp duty, with the threshold at which movers pay the tax decreasing from £250,000 to £125,000 at the end of March.
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: “House prices are recovering quickly from the disruption caused by the hike to stamp duty in April.
“Month-to-month house price inflation can be volatile at the best of times, so the sharp gains in house prices in May and June could be partly undone by a fall in July’s data.
“But cutting through the noise, we think fundamental housing demand remains solid, indicating that house prices can continue to rise steadily over the course of the second half of 2025.”
Average UK:
— Office for National Statistics (ONS) (@ONS) August 20, 2025
• house prices increased by 3.7%, to £269,000, in the 12 months to June 2025, up from 2.7% in the 12 months to May
• monthly private rents up by 5.9%, to £1,343, in the 12 months to July 2025, down from 6.7% in the 12 months to June
➡️ https://t.co/FZaF6ImGIY pic.twitter.com/547R2YhUcg
Average house prices increased to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, in the 12 months to June.
Meanwhile, average UK monthly private rents increased by 5.9%, to £1,343, in the 12 months to July, the statistics body said.
Average rents increased to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, in the 12 months to July.
ONS head of housing market indices Aimee North said: “House price annual inflation continues to pick up with the average UK house price now at around £269,000.
“Annual private rents inflation has slowed across the whole of the UK for the seventh consecutive month.”
Jean Jameson, chief sales officer at Foxtons, said: “July brought a steady pace of activity, even as the summer holidays took some buyers and sellers out of the market.
“That said, well-priced homes, especially one and two-bed flats where supply is strongest, continued to attract interest.
“We’ve also seen an encouraging shift in sentiment following the recent base rate cut, which should support a pick-up in activity as we move towards the autumn.”
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