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Published: 17/09/2025
Each month, Halifax, Nationwide and HM Land Registry publish house price indices, tracking the movement in average house prices in the UK. Halifax and Nationwide updates are based on mortgage approvals data, while the UK HPI is a joint production by HM Land Registry, Land and Property Services Northern Ireland, ONS and Registers of Scotland.
House price indices show continued growth
House prices grew in the year to August 2025, according to Halifax(1) and Nationwide’s(2) indices.
Halifax reported a 2.0% annual increase in house prices, while Nationwide’s index showed an increase of 2.1% on the same period.
Dr David Crosthwaite, chief economist at BCIS, said: ‘With house price growth remaining below wider inflation, the housing market looks challenging. The expectations are that the base rate is not likely to fall from 4%, which will impact affordability in the short term.
‘Add to this that earnings growth seems to have stalled, it appears the housing market could face a difficult few months ahead.’
On a monthly basis, Halifax said prices increased by 0.2% on July 2025, while Nationwide’s index showed a 0.1% fall.
Elsewhere, the Financial Conduct Authority, which collects mortgage lending data via the Mortgage Lending and Administration Return, reported(3) the value of new mortgage commitments (lending agreed to be advanced in the coming months) increased by 14.6% in 2Q2025 from the previous quarter – the highest since 3Q2022.
Amanda Bryden, Head of Mortgages at Halifax, remarked on the stability of the housing market in 2025 despite wider economic pressures.
She said: ‘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%.’
Nationwide’s Chief Economist, Robert Gardner, said that while subdued pace of house price growth was understandable, affordability was likely to improve if income growth continues to outpace house price growth.
He added: ‘Borrowing costs are likely to moderate a little further if Bank Rate is lowered again in the coming quarters. This should support buyer demand, especially since household balance sheets are strong and labour market conditions are expected to remain solid.’
The UK HPI(4), with the latest data for July 2025, showed a 2.8% increase in house prices compared with July 2024, with a 0.3% increase on June 2025.
As the UK HPI figures cover house sales that may have been agreed in months previously, there tends to be a lag in the data.
Source: Halifax (Methodology), Nationwide (Methodology), UK HPI (Methodology)
The latest regional data from Nationwide shows Northern Ireland, the North and Scotland saw the greatest annual increases in 2Q2025.
There was a 9.7% rise in house prices in Northern Ireland, down from 13.5% in 1Q2025. East Anglia showed the lowest annual increase, with 1.1% growth in the same period.
Source: Nationwide
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