UK house prices to hit £300,000 by 2025

The average UK house price is expected to reach £300,000 by August 2025, according to a new report by easyMoney.

The online investment platform has analysed the historic data of the UK’s property market since the 1970s to find how quickly it has surpassed each £50,000 house price threshold.

It reveals that the average house price hit the £10,000 mark for the first time in January 1976 and took 12.5 years to reach £50,000 in July 1988.

It then took another 13.6 years to climb to £100,000 in February 2002, followed by a rapid increase to £150,000 in just 2.5 years by August 2004.

It took 11 years to reach £200,000

However, the financial crisis of 2007/8 slowed down the market growth and it took 11 years to reach £200,000 in July 2015.

The next milestone of £250,000 was achieved in March 2021, after a pandemic-induced house price boom.

The current average house price is just shy of £290,000, but easyMoney estimates that it will take until the end of August 2025 to reach the £300,000 mark.

This would mean a space of 4.4 years between the £250,000 and £300,000 thresholds.

UK housing market is susceptible to wider economic ebbs

Jason Ferrando, easyMoney‘s chief executive, said: “On a short-term basis, the UK housing market is certainly susceptible to wider economic ebbs, flows and woes.

“But when you step back and look at the market’s long-term performance, it’s clear how strong, reliable, and resilient UK housing is as an investment asset.”

He added: “As such, if investors are attracted to the property market, we would encourage them to shake off any concerns about the immediate economic landscape and instead look at long-term performance and consistency of the market’s performance over the last 50 years.”