05.09.202506:07:34UTC+00UK House Prices Growth Above Forecasts

In August 2025, the Halifax House Price Index in the UK experienced a 2.2% year-on-year increase. This was a deceleration from the 2.5% rise observed in July, yet it surpassed the anticipated 2% gain. This represents the slowest annual growth since June 2024. On a monthly scale, property prices rose by 0.3%, exceeding the forecasted 0.1% increase, following a 0.4% rise in July. The average property value reached a new peak at £299,331. Amanda Bryden, who leads the Mortgage division at Halifax, noted that the housing market in 2025 has demonstrated consistent growth. This has been facilitated by reduced mortgage rates, robust wage growth, and enhanced affordability, with many fixed-rate mortgage deals now dropping below 4%. First-time buyers are also benefiting from increased affordability, with average property values declining by 0.6% since May. Regionally, Northern Ireland led with an annual increase of 8.1%, followed by Scotland at 4.9%. Conversely, the South West saw a 0.8% decline, marking the first annual decrease in UK regions in over a year. London experienced moderate growth of 0.8%, maintaining its status as the most expensive region, with an average property price of £541,615.