Average house price hits record £299,331 – Halifax

Property prices across the UK have grown for the third month to reach a record £299,331, Halifax says.

Its latest index reveals that in August, house prices grew by 0.3%, or £932.

The annual price growth was up 2.2%, which is down from July’s annual price rise of 2.5%.

Also, the average first-time buyer price fell slightly as affordability improves.

Property market is stable

Amanda Bryden, the head of mortgages at Halifax, said: “The story of the housing market in 2025 has been one of stability.

“Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures.”

She added: “Affordability remains a challenge, but there are signs of improvement.

“Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%.”

Regional house prices up

Leading the UK’s house price growth chart is Northern Ireland, with average property values up by 8.1% over the past year.

However, that’s down from last month’s 9.3% last month. The typical home now costs £217,082.

Scotland saw the next strongest annual increase with prices rising 4.9% in August to an average of £215,594.

In Wales, property values rose 1.6% year-on-year, though the pace of growth has eased in recent months. The average home now costs £227,786.

Across England, there remains a clear North/South divide.

The North East, North West, and Yorkshire and the Humber all recorded annual growth above 4%, making them the fastest-rising regions.

Prices in the South West fell 0.8% over the past year, the first UK nation or region to record an annual decline since Eastern England in July 2024 (-0.2%).

London continues to see modest growth, with prices up 0.8% year-on-year and it remains the most expensive part of the UK, with an average property value of £541,615.

Property sector reaction

Propertymark‘s chief executive, Nathan Emerson, said: “With the number of listings, sales agreed, and stock levels higher than this time last year, and with some banks offering specific help to first-time buyers to take their first step onto the housing ladder, this is a sign that the housing market is holding firm.

“However, the latest announcements from the UK Government about reforming Stamp Duty and charging landlords with National Insurance contributions ahead of the next Budget will continue to add further uncertainty for many potential buyers and sellers.

“This may delay moving plans for a number of people until they know for sure what is likely to happen next.

“Therefore, we need to see further clarity from the UK Government sooner rather than later.”

Guy Gittins, the chief executive of Foxtons, said: “Following interest rate reductions, improving mortgage affordability and the increasing number of higher loan-to-income ratio products available, we’re now seeing the uplift in mortgage market activity begin to convert into transactional growth. In turn, the rate of house price growth is starting to accelerate.

“Market momentum remains steady, and this underlying stability is encouraging buyers and sellers back into the fold, albeit with a degree of caution ahead of November’s budget.

“For those looking to sell, the key to success is a pragmatic approach to pricing in line with current market conditions.”

Marc von Grundherr, a director of Benham and Reeves, said: “Another month of measured house price growth and the third consecutive monthly increase seen confirms what we’ve been seeing on the ground – a slow but steady market trajectory that demonstrates buyer and seller activity is building, albeit gradually.

“Whilst the market has stabilised considerably in recent months, there’s now a new layer of uncertainty hanging over us as we look towards the Autumn Budget and this is likely to keep many buyers, in particular, sitting on the fence for the short term.

“However, for many, this isn’t about the threat of higher costs or new taxes, but rather the possibility of stamp duty being scrapped altogether.

“Understandably, buyers are keen to wait and see if such a significant financial barrier is removed and should the government take that step, we can expect a sugar rush of sudden house price inflation as buyer activity is supercharged like never before.”

Tom Bill, the head of UK residential research at Knight Frank, said: “Stable mortgage rates have helped the housing market get back on its feet after the April stamp duty cliff edge, but high levels of supply mean annual price growth has drifted lower.

“Although there is a risk that some buyers and sellers hesitate ahead of the Budget, which would increase downwards pressure on prices, others may be keen to accelerate their plans, which would have the opposite effect.

“It will depend on whether people are more focussed on possible changes to stamp duty or capital gains tax.

“The former feels too difficult to attempt and the latter feels politically toxic.”