Finance
UK house prices rise 0.3% in August, Halifax says
Published by Global Banking and Finance Review
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 5, 2025
2 min readLast updated: January 22, 2026
UK house prices rose 0.3% in August, marking a third consecutive monthly increase. Halifax reports an annual rise of 2.2%, with the average property price hitting a new high.
LONDON (Reuters) -British house prices rose 0.3% in August, a third consecutive monthly increase that leaves them 2.2% higher than a year earlier, figures published by mortgage lender Halifax showed on Friday.
Economists polled by Reuters had forecast prices would rise 0.1% on the month and be 2% higher than the year before.
British house prices have been rising more slowly than consumer price inflation in recent months, after a surge in the first quarter of this year when buyers sought to take advantage of the final months of a tax break on property purchases.
“While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride," said Amanda Bryden, Head of Mortgages at Halifax.
"Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year."
August data from rival mortgage lender Nationwide on Monday showed that prices unexpectedly dropped 0.1%, causing annual house price inflation to slow to 2.1% from 2.4%.
Property website Rightmove - which advertises the vast majority of British homes for sale - said there had been a rise in sales in July, as sellers dropped their initial asking prices by more than usual due to a glut of property on offer.
Halifax's Bryden said the average property price had reached a new record high of 299,331 pounds ($404,366.25).
Figures from the Bank of England showed mortgage approvals picked up to a six-month high in July.
However, industry body RICS said some buyers had appeared cautious that property taxes on more expensive homes would rise in finance minister Rachel Reeves' annual budget, which will take place on November 26.
Separate data from Rightmove, released earlier on Friday, showed that average rents for newly advertised tenancies were 3% higher than a year earlier at a record 1,577 pounds a month.
($1 = 0.7402 pounds)
(Writing by David Milliken; editing by William James)
A mortgage is a loan specifically for purchasing property, where the property itself serves as collateral. Borrowers make regular payments to repay the loan over time.
House prices refer to the market value of residential properties, which can fluctuate based on demand, location, and economic conditions.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI).
Mortgage approvals are the process by which lenders assess and agree to provide a loan to a borrower for purchasing property, based on their financial status.
Rental price inflation refers to the increase in rental prices over time, often influenced by demand, supply, and economic factors.
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