UK monthly house price rise slows to 0.3%, hits record average value

The average UK house price rose for the third consecutive month in August to a record high, though the rate of growth slowed slightly from the month prior, Halifax reported on Friday.

The Halifax house price index found that the average UK house price increased by 0.3% to a new record high of £299,331, slowed slightly from a 0.4% growth in July to £298,237 and slowed against the 0.6% rise reported for August 2024. It was a sharper growth in August than the FXStreet-cited consensus of 0.1%.

The average house price is now 2.2% higher over the past year, easing from a 2.5% annual growth rate in July, but above the market consensus of 2.0%.

‘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%,’ said Amanda Bryden, head of mortgages at Halifax.

‘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.

‘While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride. 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.’

Northern Ireland saw the UK’s strongest annual price growth again, with the average house price increasing 8.1% to £217,082.

Scotland recorded 4.9% annual growth in August to an average of £215,594, while property prices in Wales rose 1.6% to £227,786.

The North East and North West of England, alongside Yorkshire & the Humber, all reported annual growth above 4%.

The South West of England, on the other hand, saw prices fall 0.8% over the past year, making it the first UK nation or region to record an annual decline since Eastern England in July 2024.

London property prices edged up 0.8% on-year, with an average property value of £541,615.

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