UK house prices hit record average value
House prices ticked up 0.3% on the month following a 0.4% jump in July, new data from Halifax shows. On the year, prices were up 2.2% in August, easing from 2.5% growth the month before.
This means that the average price of a home stood at £299,331 last month, up from £298,400 in July and marking a new record high.
“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,” said Amanda Bryden, Head of Mortgages at Halifax.
“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%.”
Combined with strong wage growth – which has outpaced house price inflation for nearly three years – this is giving more prospective buyers the confidence to take the next step, said Bryden.
“Summer is typically a quieter period for the market, so the recent rise in mortgage approvals to a six-month high is an encouraging sign of underlying demand.
“While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride. Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year.”
- Northern Ireland saw the UK’s strongest annual price growth again, with the average house price increasing 8.1% to £217,082.
- Scotland recorded 4.9% annual growth in August to an average of £215,594, while property prices in Wales rose 1.6% to £227,786.
- The North East and North West of England, alongside Yorkshire & the Humber, all reported annual growth above 4%.
- The South West of England, on the other hand, saw prices fall 0.8% over the past year, making it the first UK nation or region to record an annual decline since Eastern England in July 2024.
- London property prices edged up 0.8% on-year, with an average property value of £541,615.
