House prices across the UK have climbed once more, setting a fresh record high, according to the latest update from Halifax. This marks the third consecutive month of growth, showing a level of resilience that has surprised many, given the broader economic headwinds affecting households.
The lender reported that the average property price in August rose by 0.3 per cent, bringing the typical home’s value to £299,331. While this increase may appear modest, it continues a pattern of steady progress and reflects growing confidence among buyers who are benefiting from slightly more affordable borrowing conditions.
These findings contrast with much of the recent commentary about the housing market, which has often focused on weakness in high-value areas such as London and the South East. In those regions, affordability pressures and higher running costs have weighed more heavily on both buyers and sellers, making them appear more vulnerable than other parts of the country.
Halifax’s data, which is drawn from its own mortgage lending, suggests that lower rates are giving buyers a better chance of securing finance. However, the lender was quick to note that the overall rise in property values since the start of the year is only around £600, underlining just how subdued the growth has been in practice.
When compared with last year, the average property price is now 2.2 per cent higher. Yet the picture is not the same for everyone. First-time buyers, who often face the toughest financial hurdles, have seen average prices for starter homes fall slightly. Halifax revealed that the typical first-time buyer home now costs £237,577, down 0.6 per cent since May.
This shift coincides with higher stamp duty costs that came into force earlier this year. For many new buyers, these additional taxes have been another obstacle to overcome, at a time when saving a deposit and covering everyday expenses is already challenging.
Commenting on the situation, Amanda Bryden, head of mortgages at Halifax, described the housing market in 2025 as one of “stability”. She explained that the small increases since January demonstrate how the market has held steady despite persistent economic uncertainty and fluctuating consumer confidence.
For those able to save up a deposit, purchasing a home continues to make more sense financially than renting. According to Halifax, a typical first-time buyer with a 5 per cent deposit and a 30-year mortgage would pay around £1,180 each month. In contrast, the average private rent across the UK has now reached £1,343 per month.
Regional trends remain an important part of the story. The north of England has seen the strongest growth, with the North East, North West, and Yorkshire and the Humber recording increases of more than 4 per cent on average. These areas are now among the fastest-growing property markets in Britain.
Not all regions are performing as strongly. The South West, for example, has seen prices drop by 0.8 per cent over the past year. Year-on-year growth there stands at just 0.8 per cent, reflecting the effect of many second homes and holiday lets being put up for sale, often by owners reconsidering their investments.
London, as expected, remains the UK’s most expensive market. The average property in the capital is now valued at £541,615. However, growth here has been muted, with only very small increases in prices, suggesting that affordability challenges continue to limit buyer activity.
Elsewhere, Northern Ireland has stood out as the fastest-growing market, with average property values rising by 8.1 per cent over the past 12 months. Scotland has also performed strongly, with prices up 4.9 per cent in August, bringing the average home there to £215,594.
Jonathan Hopper, chief executive of Garrington Property Finders, noted that oversupply in certain markets has created downward pressure on prices. In the South West, for example, large numbers of holiday homes coming onto the market have weighed on values. In contrast, markets in Northern Ireland and Scotland continue to experience healthy levels of growth.
Looking ahead, Halifax expects prices to continue rising, albeit at a slow pace. With interest rates easing and fixed-rate mortgage deals now available below 4 per cent, the affordability picture is improving. Combined with wage growth that has been outstripping house price inflation for several years, this is giving more buyers confidence to enter the market.
That said, speculation about potential changes to property taxes in the upcoming Autumn Budget has introduced uncertainty. Rumours of reforms to stamp duty and capital gains tax are already affecting behaviour, with some buyers withdrawing from sales. As Jonathan Hopper pointed out, many are now adopting a “wait and see” approach, making the market more price-sensitive and reliant on flexible sellers.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property