UK house prices hit a new record high in August, with the average property now valued at £299,331, according to figures from Halifax. It is the third month in a row that prices have risen, suggesting the market is regaining momentum after a slow start to the year.
Prices increased by 0.3% between July and August, outstripping forecasts of just 0.1%. On a yearly basis, growth eased slightly to 2.2% from 2.5% in July, but still came in stronger than many economists had expected.
Amanda Bryden, head of mortgages at Halifax, said the market had shown “remarkable stability” despite wider economic uncertainty. “Since January, prices have risen by less than £600. That underlines how steady the market has been in the face of ongoing pressures,” she said.
Different Picture Across the UK
While overall prices are rising, not every part of the country is moving in the same direction. Northern Ireland continues to see the strongest growth, with prices up 8.1% on last year, though that was down from 9.3% in July. Scotland also recorded solid growth at 4.9%, while in Wales prices rose by 1.6%.
London remains the UK’s most expensive market, with an average home now costing £541,615, though annual growth in the capital was limited to 0.8%. The South West was the only region to see prices fall, down 0.8% year-on-year. Analysts said April’s introduction of a 100% council tax premium on second homes in Cornwall may have helped to cool demand in the region.
Experts Warn of Tax Impact
Estate agents say the market looks firmer than it did last year, with more homes available and more sales being agreed. Nathan Emerson, chief executive of Propertymark, said: “Listings and stock levels are higher than this time last year, and with lenders offering targeted products for first-time buyers, the market is holding firm.”
But some warn that potential tax changes could slow demand later this year. Verona Frankish, chief executive of Yopa, said speculation over stamp duty reform and new costs for landlords could encourage buyers to hold back until the government’s autumn budget. “The prospect of stamp duty reform is a powerful incentive which may temper the usual seasonal surge in activity, at least until the dust has settled,” she said.
Budget Decisions Loom
Chancellor Rachel Reeves will deliver her first budget on 26 November. Any reforms to stamp duty or landlord taxation are expected to be closely watched by buyers, lenders and the property industry, with the potential to shape market activity heading into next year.
