House prices in the UK are up by an average of 3.7% to £294,818 since last year, driven by demand for larger houses, according to the latest Halifax House Price Index.
An average terraced house now costs £235,296 – £10,025 (4.5%) more than a year ago – while the price of semi-detached and detached houses have also grown by 3.8% and 4.1% in the last year respectively.
Flats have seen slower growth – the average price of a flat in January 2025 was £168,569, growing by 3.2% since January 2024.
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| Row 0 – Cell 0 |
All |
Flat |
Terraced |
Semi-detached |
Detached |
|
Average price January 2024 |
£284,388 |
£163,348 |
£225,271 |
£296,317 |
£453,044 |
|
Average price January 2025 |
£294,818 |
£168,569 |
£235,296 |
£307,685 |
£471,748 |
|
Percentage growth |
3.7% |
3.2% |
4.5% |
3.8% |
4.1% |
|
Price change |
£10,431 |
£5,221 |
£10,025 |
£11,367 |
£18,704 |
Source: Halifax House Price Index, March 2025
The quicker pace of price growth for larger properties shows a reversal in the housing market after flats were most popular last year, Amanda Bryden, head of Halifax Mortgages, said.
“This time last year, the average price of a flat had risen more quickly than a detached house, as buyers adjusted to higher borrowing costs and sought to compensate by targeting smaller properties,” she added.
“Now, as interest rates have started to ease, it’s once again those homes offering more space which are fuelling demand.”
While growing house prices for larger properties will be a boon for those who already own them, those who are looking to climb the housing ladder will have a more difficult time as the rungs widen.
In 2000, an average flat was just £49,905, analysis by Halifax shows.
If you could find an extra £9,105 at the time, you would have been able to afford a terraced house. You’d have needed a further £22,006 for a semi-detached house, and an additional £51,655 for a detached property.
However, the size of the gap between the price of an average flat and an average terraced house today has soared.
In 2025, the average flat will cost you £168,569, while the average terraced property will cost £235,296. This means you will have to fork out an extra £66,726 to get to the second rung of the housing ladder.
However, when calculating how prices have changed between the start and end of the housing ladder in relative terms, the gap is almost the same in 2025 as they were in 2000.
In 2000, the average detached house was 2.7 times the cost of the average flat, while in 2025 this has only grown marginally to 2.8 times.
Bryden said that while the gap between buying your first flat and your first terraced house presents a “big challenge” to those attempting to climb the housing ladder, this is only part of the story.
“Slower growth among smaller homes is helpful for first-time buyers, and we saw a big rebound in that market last year, with a fifth more stepping onto the ladder,” she noted.
“If you look beyond the UK picture to the individual nations and regions, there’s huge variance in average price performance for different property types, with many areas offering more value for money.”
Where have property prices moved the most?
The rate of growth in property prices has not been equal across the country in the past year.
There is significant variance in how much properties have increased in value, with prices in Scotland increasing by just 2.4% since last year while house prices in Northern Ireland have ballooned by as much as 5.9% in the same period.
House prices in London and the South East have also grown slower than the UK average, with prices increasing by just 2.7% and 2.9% respectively.
While percentage change in these regions is slower than the UK average of 3.7%, they lead the way in flat price change because of their higher-than-average property prices.
|
Region |
Average price January 2024 |
Average price January 2025 |
£ change |
% change |
|
Scotland |
£203,066 |
£207,909 |
£4,843 |
2.40% |
|
Eastern England |
£325,574 |
£334,232 |
£8,658 |
2.70% |
|
Greater London |
£526,571 |
£540,861 |
£14,290 |
2.70% |
|
South East |
£377,044 |
£387,984 |
£10,940 |
2.90% |
|
East Midlands |
£234,700 |
£242,581 |
£7,881 |
3.40% |
|
Wales |
£217,121 |
£224,875 |
£7,755 |
3.60% |
|
United Kingdom Average |
£284,388 |
£294,818 |
£10,431 |
3.70% |
|
South West |
£293,678 |
£305,170 |
£11,492 |
3.90% |
|
West Midlands |
£248,761 |
£258,617 |
£9,856 |
4.00% |
|
North West |
£227,529 |
£237,681 |
£10,152 |
4.50% |
|
Yorkshire & Humberside |
£204,084 |
£213,459 |
£9,376 |
4.60% |
|
North East |
£167,769 |
£176,464 |
£8,695 |
5.20% |
|
Northern Ireland |
£193,653 |
£205,035 |
£11,382 |
5.90% |
Source: Halifax House Price Index, March 2025
