Researchers at Bird & Co have analysed the latest data from the Office for National Statistics (ONS) to uncover how house prices have changed across the UK between the 2024 year-end and the first quarter of 2025, offering valuable insights into the current state of the property market.
House prices continue to influence everything, from individual financial security to broader economic health. Changes in property values affect mortgage conditions, housing affordability, and buyer confidence, while also playing a crucial role in retirement planning and investment decisions.
With this in mind, the team at Bird & Co reviewed regional house price index figures from the ONS for all local authorities in the UK (excluding Northern Ireland) to identify where property prices have risen or fallen the most after the first quarter of 2025.
The findings reveal the top 15 locations with the largest increase in average house prices, as well as the 15 areas that saw the sharpest declines. In this article, we’ll break down the key movements, and examine what they might mean for current and future homeowners.
15 Locations with the Sharpest Rise in Property Prices
Bird & Co has identified the areas across the UK where property values surged the most during the first few months of the year. These are listed below, along with the percentage change in each:
Location | Dec 2024 Price | Apr 2025 Price | % Difference |
|---|---|---|---|
1. Kensington and Chelsea | £1,070,326 | £1,345,813 | 25.74% |
2. Shetland Islands | £191,083 | £214,676 | 12.35% |
3. Orkney Islands | £202,333 | £224,844 | 11.13% |
4. Middlesbrough | £134,424 | £147,595 | 9.80% |
5. City of Westminster | £868,377 | £946,923 | 9.05% |
6. Uttlesford | £458,874 | £495,564 | 8.00% |
7. North Kesteven | £233,291 | £249,003 | 6.73% |
8. Oadby and Wigston | £256,062 | £273,104 | 6.66% |
9. Forest of Dean | £280,748 | £297,916 | 6.12% |
10. Knowsley | £180,660 | £191,644 | 6.08% |
11. Elmbridge | £715,580 | £758,387 | 5.98% |
12. Kingston upon Thames | £568,897 | £602,583 | 5.92% |
13. Basingstoke and Deane | £359,227 | £380,011 | 5.79% |
14. Horsham | £429,636 | £453,132 | 5.47% |
15. Warrington | £239,625 | £252,499 | 5.37% |
The standout was Kensington and Chelsea, where house prices soared by over 25%, signalling a resurgence in confidence within the prime London market. Middlesbrough also saw strong growth, pointing to renewed interest in more affordable northern cities.
Remote areas like the Shetland and Orkney Islands posted double-digit rises, likely driven by demand for quieter, lifestyle-led locations with limited supply. Meanwhile, commuter-friendly spots such as Uttlesford, Elmbridge, and Kingston upon Thames continue to attract buyers seeking a balance between access to London and more space.
With growth scattered across rural, urban, and coastal areas, these results suggest both high-end investment and affordability-driven moves are shaping early 2025’s housing trends.
15 Locations with the Sharpest Drop in Property Prices
Bird & Co also identified the areas that saw the sharpest drops in average property prices during the first quarter of the year. These are listed below, along with the percentage change in each:
Location | Dec 2024 Price | Apr 2025 Price | % Difference |
|---|---|---|---|
1. Ceredigion | £235,575 | £219,182 | -6.96% |
2. Broadland | £319,439 | £298,397 | -6.59% |
3. South Cambridgeshire | £450,557 | £422,503 | -6.23% |
4. Great Yarmouth | £218,170 | £204,990 | -6.04% |
5. Cotswold | £444,114 | £417,597 | -5.97% |
6. Camden | £830,814 | £781,376 | -5.95% |
7. Castle Point | £362,331 | £341,237 | -5.82% |
8. Stirling | £237,088 | £224,077 | -5.49% |
9. South Ayrshire | £170,307 | £161,526 | -5.16% |
10. Adur | £377,300 | £357,968 | -5.12% |
11. Aberdeenshire | £208,707 | £198,028 | -5.12% |
12. West Dunbartonshire | £126,422 | £120,256 | -4.88% |
13. North East Derbyshire | £250,644 | £238,857 | -4.70% |
14. City of Dundee | £146,796 | £140,119 | -4.55% |
15. Gloucester | £241,024 | £230,074 | -4.54% |
The sharpest drops were seen in rural and coastal areas like Ceredigion, Broadland, and Great Yarmouth, where prices may be adjusting after post-pandemic demand.
Rather shockingly, high-value locations also saw movement. Camden dropped nearly 6%, hinting at ongoing caution in some areas of the prime London market. Similarly, commuter zones such as South Cambridgeshire and the Cotswolds saw notable falls, possibly linked to affordability pressures.
In Scotland, several regions including Stirling and Aberdeenshire also experienced steady declines, showing that market cooling is widespread.
Falling property prices can reduce homeowner equity and make it harder to sell without a loss, but for first-time buyers or those looking to upsize, these drops may present a welcome opportunity to enter the market at a lower cost.
Locations Where House Prices Remained Most Stable
While some regions experienced sharp rises or falls in property values, a few stood out for their remarkable stability. Between December 2024 and April 2025, house prices in Gedling and Fife rose by just 0.03%, while Watford saw a minimal increase of 0.04%.
Although modest growth is preferable to a decline, near-flatlining prices can have implications. For homeowners, limited price movement may restrict access to better mortgage refinancing deals, as equity growth plays a key role in securing favourable terms.
On the buyer side, price stability often reduces urgency. In markets like these, prospective purchasers may feel more confident taking their time, negotiating more assertively, and waiting for the right property to come along.
What is Driving UK House Prices in Early 2025?
From December 2024 to April 2025, property prices across the UK were shaped by a complex mix of economic pressures, shifting demand, and localised trends. The key factors influencing the market include:
Inflation and Supply vs Demand
The basic economic principle still holds; when the demand for housing outweighs supply, prices typically climb. Inflation, however, has had a dampening effect. With rising living costs reducing disposable income, fewer buyers are entering the market, temporarily cooling demand in some regions.
Economic Outlook and Interest Rates
Sluggish economic performance has continued into early 2025. Combined with the fact that, although decreasing, mortgage rates remain higher than what many buyers grew accustomed to over the past decade (with fixed-rate deals still averaging over 5%). This has made borrowing more expensive, softening demand and slowing upward pressure on prices.
Consumer Sentiment
Confidence among buyers and sellers plays a crucial role. While some areas have seen renewed activity - particularly in affordable or investment-attractive regions - caution still dominates much of the market. Concerns about affordability, job security, and future price drops are all feeding into more hesitant decision-making.
Employment and Cost of Living
Higher unemployment in some regions, paired with persistently high living costs, has put a strain on affordability. When wages fail to keep pace with inflation and borrowing becomes more difficult, fewer people are in a position to buy, which limits demand and affects local price trends.
Regional Differences and Location Appeal
Location continues to matter; some areas defy national trends due to localised demand, for example remote or coastal spots seeing growth driven by lifestyle moves, or luxury London boroughs bouncing back thanks to international investment. Meanwhile, commuter towns and suburban regions have not seen uniform results, reflecting how nuanced the current market remains.
How Do Shifting House Prices Affect Homeowners and Buyers?
Changes in property values can have a wide-reaching impact on both current homeowners and those looking to enter the market, influencing everything from financial planning to long-term housing decisions.
For Existing Homeowners
When house prices rise, homeowners benefit from increased equity in their property. This can unlock access to additional borrowing power through refinancing or home equity loans, offering greater financial flexibility.
However, if property values fall, that equity may shrink, potentially reducing net worth and limiting future financial options, particularly for those hoping to remortgage or move.
For Prospective Buyers
For first-time buyers and those looking to move, market conditions play a major role in affordability. When prices rise, it often means larger deposits are required and housing choices become more limited. On the other hand, a period of price stability or decline can make buying more accessible, potentially opening up more opportunities for entry into the market.
For the Wider Market
Price fluctuations also affect the broader health of the property market. Sudden spikes or drops can influence mortgage lending, new construction activity, and consumer confidence. These shifts often have knock-on effects on local economies, employment, and future investment in housing.
With this in mind, staying aware of market trends is essential for anyone planning to buy, sell, or remortgage, especially in such a fast-moving and unpredictable landscape.
Planning to Buy a Home in 2025?
If you're preparing to purchase a property this year, Bird & Co are here to support you with expert conveyancing services. Call us on 01476 372 042 or start your quote online to get things moving.
Data Sources and Methodology
This analysis is based on the latest figures from the ONS UK House Price Index.
To identify the areas with the most significant house price changes since 2024, we compared average property prices in December 2024 to April 2025, then ranked all local authorities by percentage increase/decrease.
While the rest of the UK was included in this analysis, Northern Ireland was excluded, as its house price data is only published quarterly, making it unsuitable for month-to-month comparison.
Please also note, all interpretations of the data are that of the Bird & Co researchers.
Comments