House Price Index Aug 2025
While buyer demand has cooled this month, it remains 4% higher than a year ago with agreed sales up 5% and transactions rising +4% on the same month a year ago. House prices are being held in check by a healthy supply of homes for sale (+10% year on year) alongside affordability pressures which continue to be a constraint on buying power, especially across southern England. Looking ahead, uncertainty around potential property tax changes, no Budget clarity until late November, and no short-term rate cuts expected may weigh on market activity.
What’s happening nationally
House prices are up on average +0.2% over the past month while the rate of annual house price growth slows to 2.4%.
House prices have nudged up over the past month +0.2% on average across the indices. Land Registry reporting July figures is +0.3%, Halifax has house prices up +0.3% in August, Nationwide down -0.1% in August and Rightmove reporting asking prices has a fall of -1.3%.
Annual house price growth is positive but the rate of growth has slowed from 2.8% last month to 2.4%. All of the indices are showing a slowing trend: Land Registry (2.8% vs 3.7%), Nationwide (2.1% vs 2.4%), Halifax (2.2% vs 2.4%) and Rightmove has annual house prices relatively steady (0.3% vs 0.1% last month).
Note that there has been a change of methodology in the calculation of the Land Registry house price index. From February 2025 reporting, January 2023 became the new reference period for inflation rates. Land Registry has been re-referenced because the types of property being sold can change over time.
Indices based on:
Land Registry – registered property transactions in July.
Nationwide & Halifax – mortgage valuations in August.
Rightmove – asking prices posted on Rightmove in August.
*Rightmove is not included in the index average as the basis for its index is different (asking price vs agreed sale price)
| Index reports: | Monthly change | Annual change |
|---|---|---|
| Land registry | +0.3% | +2.8% |
| Nationwide | -0.1% | +2.1% |
| Halifax | +0.3% | +2.1% |
| Rightmove | -1.3% | +0.3% |
| Average change | +0.2% | +2.4% |
House prices in your area
Regional house prices
House prices have been relatively steady over the past month with either no change or a slight increase/ decrease in most regions of the UK. Over the last year, house prices have increased in all areas with the biggest rises in: The North East of England (+7.9%), Northern Ireland (5.5%) and the North West (4.8%).
Most expensive/ cheapest areas
In terms of average house price, the most expensive regions in the UK are London (£562K), the South East (£382K), the East of England (£338K) and the South West (£306K). The cheapest regions are the North East of England (£164K), Northern Ireland (£185K), Scotland (£192K) and Yorkshire & Humber (£206K).
In terms of cities, the most affordable are: Aberdeen (£136K), Glasgow (£156K), Newcastle (£160K) and Sheffield (£176K). And, the most expensive cities in the UK are: London (£536K), Cambridge (£468K), Oxford (£452K), Bristol (£343K) and Bournemouth (£324K).
Prices by property type
House prices increased in the last year for detached (+3.6%), semi-detached (+3.6%), terraced (+2.8%) properties and for flats/ maisonettes (+2.8%).
| UK Region | Average price £ | Monthly change | Annual change |
|---|---|---|---|
| England | |||
| Nothern Ireland | |||
| Scotland | |||
| Wales | |||
| North West | |||
| Yorkshire and The Humber | |||
| North East | |||
| West Midlands | |||
| East Midlands | |||
| South West | |||
| East of England | |||
| South East | |||
| London |
| UK City | Average price | Annual change |
|---|---|---|
Market Monitor
July transactions of 95.6K were up 1% on June (94.5K) and up +4% on transactions last July (92K).
RICS reports a fall in both buyer demand and new seller instructions in August. Both Rightmove and Zoopla report stronger market activity overall in 2025 than 2024. Zoopla says buyer demand has cooled this month but remains 4% higher than a year ago with 5% more sales agreed. And the stock of homes for sale is steady this month, up 10% on last year (helping to keep downward pressure on house prices).
The average time to secure a buyer in August is 63 days according to Rightmove up from 62 days in July and slightly below the 12 month average (which is also 65 days).
How busy is the market?
- Not busy
- Normal
- Very busy
- Transactions in July are up
- Total transactions in July 2025 95.6K
- +1% versus last month
- +4% higher than last year
Homes for sale vs homebuyers
- Good availability of homes
- Normal
- Shortage of homes
- Buyer enquiries fall(-17% RICS July data)
- Seller instructions down (-3% RICS July data)
- Average stock per agent 65 in August; steady with July (incl under offer/ Sold STC Rightmove)
Average speed of sale
- Fast
- Normal
- Slow
- Aug figure: 63 days to find a buyer, up month on month; but faster than the 12 month average of 65 days (Rightmove)
What the experts say
Rightmove
“The average price of property coming to the market for sale drops by a seasonal 1.3%. August’s price drop is in line with the ten-year average following the bigger than usual falls in June & July. We usually see a busier autumn compared to the summer as the new school year starts and more focus returns to moving home. An active autumn will certainly be helped by the recent third
interest rate cut of 2025 by the Bank of England. While we don’t expect the cut itself to spark major mortgage rate drops, it’s good for market sentiment and buyer optimism.”
Nationwide
“The relatively subdued pace of house price growth is perhaps understandable, given that affordability remains stretched relative to long-term norms. House prices are still high compared to household incomes, making raising a deposit challenging for prospective buyers, especially given the intense cost of living pressures in recent years. Combined with the fact that mortgage costs are more than three times the levels prevailing in the wake of the pandemic, this means that the cost of servicing a mortgage is also a barrier for many. Indeed, an average earner buying the typical first-time buyer property with a 20% deposit faces a monthly mortgage payment equivalent to around 35% of their take-home pay, well above the long run average of 30%.”
Zoopla (Hometrack)
“The lead indicators of housing market activity are all higher than a year ago. Buyer demand has cooled over the summer but remains 4% higher than a year ago. This is supporting continued growth in the number of sales agreed which are 5% higher. The pace of house price growth has slowed over recent months, but the slowdown has bottomed out. Slower price inflation is down to a greater choice of homes for sale (10% more than last year) while affordability continues to be a constraint on buying power, especially across southern England. House prices continue to rise more slowly than earnings (4.7%), a trend that has been running for almost 3 years. This is positive and steadily helping to repair housing affordability, supporting demand and sales. Homes that are well priced are attracting bids and selling in a timely manner albeit with some regional variations. Setting the wrong price can mean it will take more than twice as long to find a buyer and sell your home.”
Halifax
“The story of the housing market in 2025 has been one of stability. Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures. 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.”
RICS
“The feedback to the August 2025 RICS Residential Market Survey signals a continued slowdown in sales market activity, with most parts of the UK now seeing a decline in the volume of new buyer enquiries coming through. Moreover, forward looking sentiment points to this subdued backdrop remaining in place over the coming months, while the consensus view among respondents for the year ahead has turned largely flat.”
