Average UK house prices: last 3 months
The average house price in the UK is £271,000 as of August 2025 (published September 2025). This is a rise of 1.4% or £3,870 over the past year.
Property type | June 2025 | July 2025 | August 2025 | Annual price change to August 2025 (£) | Annual price change to August 2025 (%) |
Average UK house price | £270,100 | £271,100 | £271,000 | £3,870 | 1.4% |
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Average house prices by property type: last 3 months
Property type | June 2025 | July 2025 | August 2025 | Annual price change to August 2025 (£) | Annual price change to August 2025 (%) |
Flats and maisonettes | £192,600 | £191,900 | £192,000 | -£1,230 | -0.6% |
Terraced houses | £239,600 | £239,00 | £240,200 | £4,980 | 2.1% |
Semi-detached houses | £277,200 | £276,200 | £277,500 | £7,090 | 2.6% |
Detached houses | £452,200 | £450,700 | £452,300 | £6,850 | 1.5% |
Budget uncertainty starting to impact home buyers
UK homebuyers have returned to the market in strength over the past two years, driving a steady recovery in housing sales. The average estate agent now has 36 homes for sale, which is 20% more than in 2023 and 8% higher than at this point last year. Sales are also rising as determined buyers look to secure homes this autumn.
Recently, though, speculation about possible tax changes has started to affect activity. Our data shows both buyer demand and new listings for homes priced above £500,000 are down compared with a year ago, as some buyers pause to see what the Autumn Budget may bring.
The uncertainty began in August, when the media reported on several policy papers. These included ideas such as scrapping stamp duty and replacing it with an annual property tax on homes worth over £500,000, a council tax revaluation, and even capital gains tax on sales above £1.5m. None of these proposals came directly from the government, but they were described as “options ministers are considering”, which has been enough to unsettle parts of the market.
Property tax speculation hits demand and new listings
Right now, one in three homes for sale is priced above £500,000, and 8% are over £1m. But over the past five weeks, buyer demand for £1m+ homes has dropped 11% compared with the same time last year, while demand for properties over £500,000 is down 4%.
Sellers are also sitting tight. There are 9% fewer £1m+ homes and 7% fewer £500,000+ homes coming onto the market. By contrast, demand and supply in the rest of the market are broadly in line with last year, suggesting that speculation about possible Budget changes is mainly affecting higher-value properties.
London and the South East have the largest share of homes priced over £500,000, so the impact of this uncertainty is likely to be felt most strongly there in the weeks ahead.
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UK house price inflation running at 1.4%
UK house price growth has been slowing in recent months. In August, average prices were 1.4% higher than a year ago, compared with 1.9% growth in December 2024. Over the past year, the average UK home has gained £4,350 in value, bringing the average price to £271,000.
Growth is weakest in southern England, where prices are rising by less than 0.5% across London, the South East, the South West and the East of England. Elsewhere in the UK, annual growth ranges from 1.4% up to 7.9% in Northern Ireland. In the North West, prices are 3.1% higher year-on-year.
Higher stamp duty costs since April, combined with affordability pressures, are holding back growth in the south. For buyers in other regions, however, these challenges are proving less of a barrier.
Market resilient in more affordable areas
There’s a clear pattern between local house prices and growth: the lower the average value of homes, the stronger the price increases.
Markets with average prices below £200,000 are seeing the fastest growth, up 2.8% on average. By contrast, in areas where homes average more than £500,000, prices are barely moving.
Some of the strongest growth can be seen in five postal areas where prices are rising by over 4%:
Kirkcaldy (KY), north east of Edinburgh
Oldham (OL), in the north west of England
Tweeddale (TD), on the eastern Scottish Borders
Motherwell (ML), south of Glasgow
Llandrindod Wells (LD), north of Cardiff in Wales
For agents in these stronger-growth markets, this resilience – despite wider economic headwinds – is a positive signal for demand, pricing and the speed of sales.
In contrast, house prices are falling by more than 1% across parts of southern England, with the largest drops in:
Bournemouth (BH)
Truro (TR)
Exeter (EX)
Torquay (TQ)
Central London (WC and EC)
Here, factors such as second-home council tax changes have increased supply, pushing prices down. For agents in these markets, it’s more important than ever to advise sellers on competitive pricing and strategic marketing to stand out in a crowded marketplace.
Mortgage rates stable between 4% and 5%
Greater stability in mortgage rates has helped drive the recovery in housing market activity, following the sharp rise in average rates through 2022 and 2023.
At present, average rates for new 5-year fixed deals sit between 4% and 5%, depending on the size of the loan. Earlier this year, many expected base rates to fall more quickly, which would have pushed mortgage rates lower, but that hasn’t happened.
Even so, buyers are finding it easier to borrow. Thanks to changes in lender affordability rules, homebuyers can now borrow around 20% more than they could six months ago, at the same mortgage rate and on the same income. This shift has boosted demand in recent months, particularly among first-time buyers and in more affordable housing markets.
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What’s next in the UK housing market?
Housing activity has been on the rise for the past 18 months, but this momentum is likely to level off in the coming weeks as uncertainty around the Autumn Budget affects buyer confidence. Speculation around tax changes is nothing new, but this year the rumours have been more prominent, and the market is already showing signs of a reaction.
Demand and new listings for higher-value homes are weaker, driven partly by hopes of saving on stamp duty and partly by concerns over possible new taxes. By contrast, activity in the wider market is holding steady compared with last year, with the strongest price growth in more affordable areas – underlining the north–south divide.
With the Budget just two months away, it’s worth remembering that moving home typically takes six to seven months from offer to completion. For serious buyers, waiting for certainty could mean missing out on opportunities in the meantime.
UK house price changes by region and city
About our House Price Index
The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes - it’s not an index tracking asking prices. The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s a revisionary index and non-seasonally adjusted.
Download our House Price Index - September 2025 (PDF, 300KB)
Additional notes on this month’s data:
The average agent has 36 homes for sale, a fifth more than in 2023 and 8% higher than this time last year: in the 4 weeks to 21 September 2025 vs the same period in 2024, Zoopla data
Average mortgage rates for new loans are currently between 4% and 5% for a 5-year fixed rate deal: Bank of England, Bankstats
Previous House Price Index reports
See more stories from our House Price Index