UK House Price Index summary: August 2025
The average price of a property in the UK was £273,000
The annual price change for a property in the UK was 3.0%
The monthly price change for a property in the UK was 0.8%
The monthly index figure (January 2023 = 100) for the UK was 104.6
Colleen Babcock, Rightmove’s property expert, says:
“A decade-high level of homes this year has limited the growth of house prices compared to last year. Buyers have more choice and more negotiating power, and we’re seeing more realism from sellers about the prices they can set to find a buyer amongst the competition. However, prices are holding up more strongly in the north of England, Wales and Scotland, where more affordable price points means that changes to stamp duty charges from April have had less of an impact. They’ve had more of an impact in the higher-priced south of England, where there is also now some uncertainty around what the upcoming Autumn Budget may contain. Affordability remains stretched, with mortgage rates stable but slow to come downwards, and today’s stubborn inflation figure also highlights wider affordability challenges.”
Nathan Emerson, CEO of Propertymark, said:
“Despite an economy that continues to throw challenges, especially to those on the housing ladder, it is positive to see people witness growth in their equity when looking at property. Consumers have battled a very unfavourable combination of high inflation and interest rates over the last few years, and there remain potential uncertainties ahead in many cases.
“Next month, we will see the Chancellor set down fiscal plans within the Autumn Budget, and there is widespread speculation that Stamp Duty across England and Northern Ireland may be scrapped and potentially replaced with an alternative. Depending on what is proposed and implemented, there is potential to create a much smoother-flowing property marketplace. However, it is important that any new system helps remove barriers to purchasing a property for those who aspire to.”
Responding to the latest on private rented prices, Nathan Emerson, CEO of Propertymark, said:
“With the average income needed to rent a home across the UK now reaching £45,420 and £1,514 being the typical rental price, it is clear that there are challenges which need addressing, in terms of simply not having enough supply of rental properties available to meet current demand levels.
“We are about to witness some of the biggest evolutions in over thirty years within the rental sector, with the Renters’ Rights Bill across England and the Housing (Scotland) Bill. Both will make fundamental changes to how landlords operate and are aimed at strengthening consumer rights concerning standards. Across the forthcoming decade, it is essential that all eyes are turned to encouraging long-term investment in the rental sector to keep up with increased demand and population growth.”
Roger Morris, group distribution director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries, said:
“Another month of annual house price growth underlines the resilience of the market, but it comes with a clear caveat. Prices are edging upwards, but momentum has slowed month on month. It’s a reminder that, while the last year has been largely positive for the market, uncertainty has once again seeped in.
“Much of this reflects the looming spectre of the Autumn Budget, which is expected to introduce policies that would directly impact landlords and their investments. Changes to the tax landscape – whether through Capital Gains Tax, Stamp Duty, or National Insurance on rental income – would be particularly significant. Exact details remain scarce, so until the Budget is delivered, this uncertainty is likely to continue dampening market sentiment.
“As a lender, therefore, we recognise that the onus falls on us and the rest of the industry to help brokers and their clients best navigate the coming weeks. Bespoke, flexible solutions will be essential to helping brokers and clients capitalise on any opportunities that emerge pre- or post-Budget. Demand is likely to rise once the picture becomes clearer, and lenders will need to adapt quickly to help the market move forward with confidence.”
Paresh Raja, CEO of Market Financial Solutions, said:
“The latest HPI figures paint a familiar picture of a market showing resilience in the face of wider uncertainty. Annual growth remains positive, which is indicative of the underlying strength and long-term appeal of UK property. However, the month-on-month slowdown reflects how speculation surrounding the Autumn Budget is dampening sentiment.
“Many investors and homebuyers are understandably pausing for clarity before making their next move. They’ve faced several years of headwinds, and the policies being discussed ahead of the Budget would add another layer of complexity. While the government’s fiscal shortfall does need attention, these proposals come at a time when the market needs stability and steady investment – as such, we could see further growth curbed in the short term post-Budget as a result of the proposed measures.
“It’s important to remember, however, that the property market is cyclical, and that periods of uncertainty regularly emerge. For investors and homebuyers, maintaining perspective will be key in the coming weeks, as bricks and mortar remains a fundamentally resilient asset class despite policy changes in Whitehall. For lenders, we have a responsibility to work even more closely with brokers to ensure their clients can continue to act with confidence and adaptability, regardless of the policies announced at the end of November.”
Islay Robinson, CEO of Enness Global, commented:
“Today’s house price figures show that the market has continued to tread water with the annual rate of growth softening. This is largely due to a high level of hesitation among buyers, particularly those at the higher end of the market – with London feeling the pinch to the greatest extent as the only region to have seen a year on year reduction in property values.
This caution is understandable. With Labour under pressure to plug the hole left by its out-of-control spending, those purchasing at higher price thresholds fear they may find themselves in the crosshairs come the Autumn Budget.
This uncertainty has been a key factor behind a London market that continues to trail the rest of the UK in terms of price growth. Adjustments to inheritance tax, capital gains tax, and the non-domiciled regime have already dampened appetite among high-net-worth and international investors, while domestic buyers have faced a return to previous stamp duty thresholds.
Rumours of a tax shift toward a seller-side levy on homes valued at £500,000 or more are also cultivating uncertainty and until the dust settles on the Autumn Budget, the capital’s housing market is likely to remain subdued. However, with the latest figures today showing that inflation has unexpectedly held at 3.8%, many will now be looking to a potential base rate cut in December which should help boost the market following the Autumn Budget.”
Verona Frankish, CEO of Yopa, commented:
“On the face of it, today’s figures are encouraging with house prices continuing to climb on both a monthly and annual basis. This is despite the fact that the market often experiences a seasonal slowdown during the summer months, with August usually one of the quieter periods of the year.
Of course, it’s important to remember that whilst these Government figures provide the most concrete insight into market health, there is a delay in reporting them. It’s likely that this latest market insight doesn’t fully capture the ‘wait and see’ mentality that has begun to take hold as the Autumn Budget approaches.
What we’re currently seeing on the ground is that many buyers are pressing pause in the hope of stamp duty reform and this is naturally leading to a reduction in market activity. This means the true test of market momentum is happening now and the Autumn Budget could be a ‘make or break’ moment in this respect.”
Jonathan Samuels, CEO of Octane Capital, commented:
“Today’s house price figures paint a picture of ongoing stability and whilst the market hasn’t accelerated, it’s certainly not stuck in reverse either.
Of course, we would ideally like to see inflation easing, but today’s hold at 3.8% will come as welcome news, particularly given that it boosts the chances of a base rate cut over the coming months.
We’ve already seen improvements to the mortgage landscape as interest rates have largely trended downwards and this shift has already brought a renewed sense of optimism to the housing market.
That said, whilst the Autumn Budget isn’t expected to present a major bump in the road for the UK housing market, it’s certainly commanding the attention of the nation’s homebuyers and sellers at present. This distraction is likely to temper activity in the short term, which could cause the rate of house price growth to stutter before momentum resumes.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The latest house price figures show that the market has continued to move forward on both a monthly and annual basis, even with the looming uncertainty of the Autumn Budget causing many buyers to remain sat on the fence.
Major economic announcements such as the Autumn Statement will always bring a degree of uncertainty, particularly given that Labour has already ramped up spending and it’s the public who could be asked to foot the bill.
However, time and time again we’ve seen the UK property market stand firm in the face of challenging economic headwinds, and the upcoming Autumn Budget is unlikely to derail the progress made over the past year. In fact, with whisperings of potential stamp duty reform, there’s every chance it could provide an unexpected boost and supercharge market activity.”
Simon Gerrard, Chairman of Martyn Gerrard Estate Agents, said:
“These figures from August represent sales from earlier in the year and don’t show the slowdown that set in once Budget speculation started. However, they illustrate what a healthy housing market we could be having right now if the government wasn’t spreading unnecessary fear.
Poor messaging and policy decisions are causing some stagnation in the short-term, but these figures do show how the fundamentals underlying the UK market remain strong. There remains a lack of new supply and there is not enough housing for a population determined on homeownership. The market is waiting for clarity, which means there is a lack of transactions taking place at the moment, but once that has been given, we should see a burst of pent-up demand.”
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