UK House Prices Reach Record High of £299,331, Halifax Reports

The UK housing market has hit a new milestone, with the average property price rising to a record £299,331, according to the latest Halifax House Price Index.

The figures show house prices increased by 0.3% in August, marking the third consecutive monthly rise. This follows a 0.4% increase in July and 0.1% in June, demonstrating steady momentum across the property market despite ongoing economic uncertainty.

The monthly rise significantly outpaced the 0.1% growth forecast by economists, while the annual rate of house price growth eased slightly to 2.2% in August, compared with 2.5% in July.

Halifax comments on market stability

“The story of the housing market in 2025 has been one of stability,” said Amanda Bryden, Head of Mortgages at Halifax. “Since January, prices have risen by less than £600 overall, underlining how steady the market has been in the face of wider economic pressures. While the broader economic outlook remains uncertain, the housing market has shown resilience time and again.”

Regional housing market trends

The Halifax data reveals significant regional variation:

• Northern Ireland continues to lead with 8.1% annual growth, though this marks a slowdown from 9.3% the previous month.
• Scotland recorded a strong 4.9% annual increase, while Wales saw more modest growth at 1.6%.
• London property prices rose 0.8% annually, maintaining the highest average house price in the UK at £541,615.
• In contrast, the South West of England recorded a 0.8% annual fall, becoming the first UK region to show a yearly decline since mid-2024. Analysts suggest the introduction of a 100% council tax premium on second homes in Cornwall in April may have influenced local property values.

Market confidence remains firm

Industry experts note that housing market activity remains buoyant.
“With listings, sales agreed, and stock levels all higher than this time last year—and with lenders providing targeted support for first-time buyers—this data shows the market is holding firm,” said Nathan Emerson, Chief Executive of Propertymark.

However, some analysts have cautioned that proposed stamp duty reforms and potential changes to landlord taxation could prompt buyers and investors to delay decisions until after the autumn budget.
“The prospect of a stamp duty overhaul is a powerful factor in buyer behaviour,” said Verona Frankish, Chief Executive of Yopa. “It may temper the usual seasonal surge in activity until the government sets out its plans.”

The Chancellor, Rachel Reeves, will deliver the UK Budget on 26 November, with housing policy expected to be a key focus.