UK house prices have risen to a record average of £299,331, according to Halifax, after a third consecutive monthly increase in August.
The data points to a resilient housing market despite ongoing economic uncertainty.
Halifax reported that property prices grew by 0.3% in August, following a 0.4% rise in July and a 0.1% increase in June. The monthly figure exceeded economists’ expectations of 0.1%. However, the annual rate of growth slowed slightly to 2.2%, compared with 2.5% in July.
Amanda Bryden, 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 that the housing sector had repeatedly shown its resilience during periods of challenge.
### Regional Differences in House Price Growth
While the national average continues to edge upwards, regional performance has diverged. The south-west of England became the first part of the UK to record an annual fall in prices since July 2024, with values down 0.8% over the year.
Northern Ireland remains the strongest performer, with prices rising 8.1% annually, although that represents a slowdown from July’s 9.3% growth. Scotland recorded annual growth of 4.9%, while Welsh property values climbed by 1.6%.
London, meanwhile, continues to show modest growth at 0.8% year-on-year, though it still holds the highest average property value in the UK at £541,615.
### Market Outlook and Policy Uncertainty
Industry leaders say the market is showing strong resilience, supported by higher listings, sales, and stock levels compared with last year. Nathan Emerson, chief executive of Propertymark, 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, this is a sign that the housing market is holding firm.”
However, proposed government changes could influence activity in the months ahead. The Treasury is considering reforms to stamp duty, as well as potential national insurance contributions for landlords.
Verona Frankish, chief executive of Yopa, warned: “The prospect of a stamp duty reform is a powerful incentive which may temper this usual seasonal surge in activity, at least until the dust has settled on the autumn budget.”
Chancellor Rachel Reeves is expected to deliver the government’s budget on 26 November, with housing market reforms likely to be central to her plans.
