The UK housing market is experiencing a significant upturn, with average property prices rising by over £12,000 in the past year. Homeowners in sought-after suburban areas are seeing
substantial gains, while some of London’s most exclusive locations are witnessing sharp declines.
Suburban property prices soar
According to the latest House Price Index from online estate agents Purplebricks, property values increased between December 2023 and December 2024, despite a slight 0.1% dip from November to December.
The biggest winners in this boom are homeowners in commuter-friendly suburban areas.
St Albans, a thriving commuter hub, saw property prices surge by 8%, adding approximately £52,768 to the average home value, now standing at £651,451.
South Oxfordshire recorded a 9% annual increase, boosting average house prices by over £45,000 to £484,364.
Greenwich, in South-East London, also experienced a 9% rise, bringing its average property price to £485,772.
Central London market takes a hit
While suburban areas thrive, some of London’s most prestigious locations are seeing house prices plummet.
Kensington and Chelsea suffered a 13% monthly drop, equating to a £143,424 loss. Over the year, property values tumbled by 23%, costing homeowners an average of £245,105.
The City of Westminster was also affected, with values plunging by 22%, wiping £192,780 off average home prices. The typical property in this political and cultural district now stands at £868,377.
Despite these drops, London remains a mixed market, with 22 boroughs recording price increases. The capital’s overall average property price now sits at £548,939.
Nationwide growth continues
Across the UK, the trend remains largely positive. Property values rose by an average of £12,328 over the past year, reflecting a 4.3% increase in England, where the typical home is now valued at £290,564.
Regions experiencing the highest growth include:
- North-East: Prices jumped 6.7%, reaching an average of £161,389.
- North-West: Up 5.4%, with average values now at £211,030.
- Yorkshire & Humber: Increased by 5.9%.
- Wales: Prices climbed 4.8%, bringing the average home value to £208,197.
- Scotland: The market surged 6.9%, with Stirling leading the way, gaining nearly £25,000 in value to reach an average price of £237,088.
What this means for buyers and sellers
With prices continuing to climb, the UK is now firmly a ‘sellers’ market’. However, mortgage rates are showing signs of improvement, which could benefit first-time buyers in 2025.
Jo Pocklington, Managing Director of Purplebricks Mortgages, reassures buyers that lenders are adjusting their criteria, making homeownership more accessible. A potential Bank of England base rate cut could also make borrowing more affordable.
Meanwhile, Tom Evans, Sales Director at Purplebricks, remains optimistic about the market. “Demand remains strong, and while recent stamp duty changes could impact buyers, many are still keen to move forward with their purchases.”
How much has your property increased in value?
Curious about how much your home is worth? Use our online property valuation tool to get an estimate of your home’s latest value and see how your area has performed in this fast-moving market.
Whether you're looking to sell, buy, or simply track your home's value, staying informed is key in today’s evolving property landscape.