UK house price inflation picks up in June

(Sharecast News) - House price inflation the UK picked up in June, according to data out on Wednesday from the Office for National Statistics, as falling mortgage rates and stamp duty changes spurred demand. The average price of a house in the UK increased by 3.7% to £269,000 in the 12 months to June, compared with a 2.7% year-on-year rise in May, ONS said.

Prices across England were up 3.3% at an average £291,000, while prices rose 2.6% in Wales (to £210,000) and 5.9% in Scotland (to £192,000).

Statistics over 2025 have been disrupted by the reduction in the threshold for stamp duty, which was slashed to just £125,000 from £250,000. Buyers had rushed to complete sales before changes went into effect in April, which then resulted in a drop in activity in May.

Meanwhile, the data comes at a time of increased speculation surrounding potential changes to stamp duty - though uncertainty will remain high until the Autumn Budget expected in late-October.

"Getting rid of stamp duty would of course be popular - economists are largely in agreement that it's a regressive tax that harms mobility and growth. But levying any sales tax would discourage mobility, so why switch one for another?," said Liam Bailey, global head of research at Knight Frank, in an email.

Bailey said that any attempt to reform property taxation "is no easy task", adding: "If stamp duty is flawed (and it is), any attempt to replace it would require the Treasury to find a way to recover the lost revenue. At that point, some form of annual levy starts to look like the only viable option, and one that would at least eliminate many of the current behavioural distortions."

The ONS also reported that average private rents rose by 5.9% on last year to £1,343, slowing from the 6.7% growth seen in June, with rates up 6% in England (£1,398), 7.9% in Wales (£807) and 3.6% in Scotland (£999).