The House Price Index for August was published this morning, and shows that house prices are gradually increasing at a steady rate, and the market is showing no signs of decline.
Other highlights include:
- Monthly Change: rose by +0.3%, making a third consecutive monthly rise in housing prices
- Annual Growth: there’s been a slight increase to +2.2%, down from +2.5% in July
- Average House Price: the price of an average property is now £299,331, almost creating a new record high
- Regional Standouts: Northern Ireland continues to lead the UK for annual property price growth with the average house value spiking up +8.1% over the past year. The average typical home now costs £217,082.
- First-Time Buyer Affordability: the typical home for first-time buyers now at the price of £237,577, reducing by -0.6% since May. This is showing signs of improvement in the overall affordability for new buyers joining the property ladder.
Amanda Bryden, Head of Mortgages at Halifax further comments on how the property market has remained stable throughout 2025, with prices going up by less than £600 since January. She also mentioned that “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. 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.”
The next House Price Index report is due to release on 7th October 2025.
