House prices rose 0.3% in August, marking a third consecutive monthly increase and pushing the average property price to a record £299,331, according to the latest Halifax House Price Index. Annual growth eased slightly to 2.2%, down from 2.5% in July.
Amanda Bryden, head of mortgages at Halifax, said: “UK house prices rose again in August, up by +0.3% (£932), marking the third consecutive monthly increase.
“The average property price now stands at £299,331 – a new record high – although annual growth has eased slightly to +2.2%.
“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.”
The report found first-time buyers have seen affordability improve, with the average property value for this group falling 0.6% since May to £237,577.
On a 95% LTV mortgage over 30 years, repayments could be around £1,179 per month compared with the average UK private rent of £1,343.
Bryden added that strong wage growth and lower mortgage rates are giving buyers greater confidence, with approvals rising to a six-month high over the summer.
Northern Ireland led regional growth with an 8.1% annual increase to £217,082, followed by Scotland at 4.9% and several northern English regions above 4%.
By contrast, the South West recorded a 0.8% annual decline, the first UK region to fall since July 2024. London prices grew 0.8% year-on-year to an average of £541,615.
Industry figures noted resilience but warned of uncertainty ahead of the Autumn Budget. Guy Gittins, chief executive of Foxtons, said: “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.”
Verona Frankish, chief executive of Yopa, added: “Improved mortgage affordability is encouraging more buyers to return and this is a trend that is only likely to build as we approach the final stretch of 2025 and the rush to complete before Christmas.
“However, the prospect of a stamp duty reform is a powerful incentive which may temper this usual seasonal surge in activity.”
