Halifax: UK house prices hit record high after third monthly rise

House prices in the UK rose for a third consecutive month in August, with Halifax reporting a 0.3% increase that pushed the typical home to a new record average of £299,331.

The lender said the rise leaves average prices 2.2% higher than a year ago, and that the increase in average house prices so far this year has been modest — roughly £600. Halifax attributed part of the upward movement to lower mortgage rates that have helped some buyers borrow more.

Despite the headline record, Halifax's figures point to an uneven market. While property values broadly inched up in August, the average price paid by first‑time buyers fell slightly. Halifax said the typical first‑time buyer property now costs £237,577, down 0.6% since May — the month after a significant rise in stamp duty costs for new homeowners came into effect.

"The story of the housing market in 2025 has been one of stability," said Amanda Bryden, head of mortgages at Halifax. The lender, one of Britain's biggest mortgage providers, compiles its index from its own lending data, which can reflect the conditions faced by active borrowers more directly than broader indices.

The report runs counter to recent coverage focusing on declines in pricier markets such as London and the South East, where prices have shown weakness this year. Halifax cautioned that its lending‑based measure can be influenced by the mix of customers taking mortgages and the mix of products available, meaning trends in its index may diverge from measures that survey a wider range of transactions.

Analysts said the small overall rise and the limited year‑to‑date gain underscore a housing market that has been largely flat through 2025. The combination of higher costs introduced earlier in the year, such as the stamp duty change, and shifting affordability has produced different outcomes for buyers depending on location, property type and whether purchasers are moving up the housing ladder or entering it for the first time.

Halifax's August reading adds to a pattern of incremental monthly movements after volatility in mortgage markets over the past two years. The lender did not publish regional breakdowns in its headline release, but its commentary highlighted that stability at the national level masks varied local conditions.

The data will be watched by policymakers and market participants for signs that borrowing costs, fiscal measures and regional dynamics are pushing the market toward sustained growth or renewed weakness. For now, Halifax's figures indicate modest recovery in headline prices while revealing persistent frictions for first‑time buyers and pockets of softness in higher‑priced areas.