UK House Prices Hit Record £299,331 Despite Cooling Annual Growth: What It Means for Buyers and Sellers
A Market Hitting New Heights
UK house prices have climbed to yet another record, reaching an average of £299,331 in August 2025, according to the latest Halifax figures. While the pace of growth has eased to 2.2% annually, this new high shows that the market remains resilient despite a backdrop of economic uncertainty. For buyers, sellers, and investors alike, the figures raise an important question: what does stability at these levels mean for your next move?
Regional Trends: A Tale of Divergence
The picture looks different depending on where you live. Northern Ireland continues to lead the way with an impressive 8.1% annual increase, while Scotland also performed strongly at 4.9%. In England, the North East, North West, and Yorkshire and the Humber all posted solid growth above 4%. But not every region is experiencing the same momentum. The South West saw a 0.8% fall, with Cornwall in particular showing softness, likely influenced by second-home tax premiums. London, meanwhile, grew modestly by 0.8% but still tops the charts with average prices of £541,615.
Buyers Benefit from Affordability Gains
For first-time buyers, the news is not all daunting. The average purchase price for a first-time buyer property has slipped slightly to £237,577, a 0.6% decrease since May. Combined with lenders cutting fixed rates to below 4% and wage growth holding steady, affordability is improving. It may not be a return to bargain prices, but the conditions for stepping onto the ladder are looking more supportive than they have for some time.
Sellers Find Stability
For sellers, these figures suggest a market that is not overheating but also not collapsing. This steadiness provides reassurance when listing a property, particularly for those in regions where demand remains high. Looking ahead, policy changes could influence sentiment further. Speculation continues about November’s Autumn Budget, with proposals being floated to charge National Insurance on rental income, something that could reshape both investor behaviour and the wider housing market.
Confidence in Stability
Halifax has noted that since January, prices have moved by less than £600 on average, a remarkable show of resilience in what has been a turbulent few years. For buyers, that stability could provide the confidence needed to press ahead, and for sellers, it suggests a reliable backdrop for transactions.
At Altura Mortgage Finance, we help clients across the UK make sense of these market shifts. Whether you are buying, selling, or remortgaging, our expert advice ensures you take the next step with clarity and confidence. Get in touch today to discuss your plans, or browse our full library of insights to stay informed about the property market.
