House prices increased for the second consecutive quarter in Q2 2025, following four consecutive quarterly increases seen in 2024, according to Benham and Reeves.

Their report shows the average UK house price sat at £305,680 in Q2 of this year, a 0.7% quarterly increase. On an annual basis, the average UK house price is also 2.3% higher when compared to Q2 2024. 

Marc von Grundherr, Director of Benham and Reeves, said: “The housing market has demonstrated a great degree of resilience in 2025 and despite the turbulence of the wider economic landscape, we've seen house prices climb at a slow but consistent rate. 

“Buyers have returned at mass, with mortgage approvals posting above the 60,000 monthly threshold for well over a year now. However, they remain restricted by higher interest rates which are impacting their mortgage affordability and the price they are willing to commit to when purchasing. 

“In contrast, sellers are sitting stubbornly firm when it comes to their asking price expectations, which is evident from the widening gap between mortgage approved house prices and asking prices.”

In Q2 2025, the market gap between the average mortgage approved price of a buyer (£284,307) and the asking price expectation of a seller (£378,312) sat at 33.1%. In London the gap was 31.3% (£532,449 vs £698,863).