UK House Prices Reach Record £299,331
UK house prices rose for a third month in a row in August, pushing the average property value to a record £299,331, according to Halifax. The increase of 0.3% followed gains of 0.4% in July and 0.1% in June, comfortably beating economists’ expectations of a 0.1% rise. Despite the monthly growth, the annual rate of increase slowed to 2.2%, down from 2.5% in July.
Halifax’s head of mortgages, Amanda Bryden, described 2025 as a year of stability for the housing market, noting that prices have risen by less than £600 since January. She said the market has shown resilience in the face of wider economic uncertainty and continues to hold steady.
The latest figures highlight clear regional contrasts. Northern Ireland remains the strongest performer, with prices up 8.1% year-on-year, though the pace of growth has eased from July’s 9.3%. Scotland saw a solid annual rise of 4.9%, while Wales recorded more modest growth of 1.6%. London prices rose just 0.8%, but the capital still has the highest average property value at £541,615. In contrast, the south-west of England became the first region in over a year to register an annual fall, with prices down 0.8%, a decline linked in part to Cornwall’s introduction of a 100% council tax premium on second homes earlier this year.
Growth slows to 2.2% annually as regional divides widen, with Northern Ireland leading gains.
Market activity overall remains stronger than at the same time last year, with more listings and sales agreed. Some lenders are offering additional support to first-time buyers, helping to sustain demand. But uncertainty lies ahead, with government proposals to reform stamp duty and introduce national insurance contributions for landlords already causing some buyers to pause plans. Industry pundits have expressed confidence in the markets and said the market remains firm but warned of potential disruption from policy changes. Other analysts have noted that speculation over stamp duty reform could dampen activity until after the chancellor, Rachel Reeves, delivers the autumn budget on 26 November.
Albeit the housing market has proven resilient in 2025, with prices reaching record highs and overall stability maintained, however, with growth slowing and regional differences widening, the direction of the market now rests heavily on upcoming government decisions, which could determine whether the current momentum carries into next year.
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