Published 27th February 2025

In this month’s report:

• Key indicators of housing market activity have increased by over 10% year-on-year, signalling strong borrower demand.
• Annual house price growth has moderated to 1.9% as higher mortgage rates and increased buying costs from April weigh on affordability.
• The number of flats for sale has risen sharply (+14% YoY) compared to a more modest increase in houses (+5%).
• Over the past five years, house prices have grown 24%—three times faster than the 7% increase in flat prices.
• The house-to-flat price ratio has hit a 30-year high (1.7x), reinforcing demand for houses despite affordability constraints.
• Despite more affordable pricing, flats remain less attractive to buyers—mortgage repayments on a flat are 43% lower than renting, yet demand remains focused on houses.
• Strong wage growth is supporting affordability, but an increasing supply of homes for sale is likely to moderate future price inflation, shaping lending strategies in the coming months.

Access the full report below, as well as our London House Price Index and detailed price metrics for 65 cities across the UK.