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UK House Price Index – February 2025

Research and Insight
Top insights
Executive summary
Key measures of market activity increasing by over 10% YoY
House price inflation ticks lower to 1.9% in response to higher mortgage rates and rising buying costs from April
Rapid growth in number of flats for sale: +14% vs +5% for houses
Value of houses has increased 24% over 5 years, 3x faster than the 7% growth in the price of flats
Gap between price of houses and flats is at a 30-year high (1.7x)
Buyers still prioritising houses despite lower prices of flats - mortgage repayments for a flat are 43% lower than rental costs
Strong earnings growth supporting activity, but greater supply of homes for sale is expected to keep price inflation in check
+ 1.9 %

Annual UK house price inflation (Jan 2025)

1.7 x

Ratio of house to flat prices - highest for 30 years

- 43%

Mortgage repayments on a flat vs cost of renting

“The housing market is resilient, supported by faster growth in average earnings. There are the most homes for sale in 7 years, which will keep price inflation in check. Are canny buyers missing opportunities in the flats market?”

Richard Donnell Executive Director - Research
All measures of sales market activity posting double-digit growth
Source: Zoopla Research
% change - 4 weeks to 19 Feb 2025 compared to the same period in 2024