The Office for National Statistics’ (ONS’) data showed that this was a 0.8% monthly change versus July and equates to an £8,000 rise versus 12 months ago.
For August this year, England’s average house prices saw a 2.9% increase to reach £296,000, while Wales underwent a smaller 2% rise to £211,000. Scotland saw a larger increase of 4%, meaning its average house price stood at £194,000.
For the year to Q2 2025, Northern Ireland’s house prices were up by 5.5% to reach £185,000.
Semi-detached and terraced homes see increases but flats decline
The average prices of semi-detached and terraced homes rose by 4.9% and 3.1% respectively compared to August last year, coming to £277,927 and £230,058 this August.
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However, flats and maisonettes saw a small year-on-year decline – from £197,803 in August 2024 to £197,462 this year, marking a 0.2% decrease.
All regions in England underwent a positive annual change except London, which saw a 0.3% fall to £565,567. The most significant annual price rise was seen in the North East, where a 6.6% increase left the average house price standing at £163,534.
New builds surge YOY
While noting that there is uncertainty around new-build pricing, the ONS found that new-build property prices increased annually by 19.6% to June 2025, reaching an average of £380,120.
Existing resold property underwent a more modest lift of 2.8% to £263,847 in the same period. Both types of property also saw monthly rises in June 2025 – of 4.2% and 1.3% for new builds and existing resold property, respectively.
Housing market ‘quieter’ as buyers await Budget
Nathan Emerson, CEO of Propertymark, said: “Despite an economy that continues to throw challenges, especially to those on the housing ladder, it is positive to see people witness growth in their equity when looking at property. Consumers have battled a very unfavourable combination of high inflation and interest rates over the last few years, and there remain potential uncertainties ahead in many cases.
“Next month, we will see the Chancellor set down fiscal plans within the Autumn Budget, and there is widespread speculation that stamp duty across England and Northern Ireland may be scrapped and potentially replaced with an alternative. Depending on what is proposed and implemented, there is potential to create a much smoother-flowing property marketplace. However, it is important that any new system helps remove barriers to purchasing a property for those who aspire to.”
Mark Harris, chief executive of SPF Private Clients, added: “With inflation holding steady once more in August, there are hopes that it may have finally peaked. Swap rates, which underpin the pricing of mortgage rates, reacted well this morning to the better-than-expected news on inflation.
“Even so, the rate setters at the Bank of England are likely to continue with their cautious approach, with the money markets regarding chances of another interest rate reduction before Christmas as slim and the new year looking more likely.
“With the housing market quieter as some buyers and sellers wait to see what is in the Budget, and with swap rates falling in the past week, lenders may be tempted to tweak mortgage rates downwards to generate more business. Affordability and borrowing potential continue to improve regardless of rate movements, as lenders adjust criteria and innovate.”
