Annual home worth development slowed in August, with London the one English area to see a decline in property values, based on the most recent knowledge from the Workplace for Nationwide Statistics (ONS).
The ONS reported that the annual development price in home costs fell to three.0% in August, down from 3.2% in July.
Common costs within the 12 months to August 2025 rose to £296,000 in England, reflecting 2.9% development; £211,000 in Wales (2% development); and £194,000 in Scotland (4% development).
Northern Eire noticed the strongest development, with the typical home worth reaching £185,000 within the second quarter of 2025, up 5.5% year-on-year.
Inside England, the North East recorded the very best annual home worth improve at 6.6%, whereas London skilled a 0.3% fall in common costs over the identical interval.
Rents
In the meantime, UK annual personal rents inflation has eased for the ninth consecutive month, and annual development has slowed for all nations throughout the UK.”
The ONS additionally launched figures exhibiting the typical personal hire within the UK was £1,354 monthly in September 2025 – £70 (5.5%) larger than 12 months earlier.
Common month-to-month rents in England have been £1,410 in September 2025, up 5.5% (£74) from a 12 months earlier. The annual rise for England represents the tenth month in a row of slowing annual inflation, the ONS stated.
In England, annual inflation in rental costs was highest within the North East (9.1%), and lowest in Yorkshire and the Humber (3.8%), within the 12 months to September.
In Wales, the typical month-to-month hire in September was £815 – a rise of seven.1% (£55) from a 12 months earlier.
The typical month-to-month hire in Scotland was £1,004 in September, up by 3.4% (£33) from a 12 months earlier. This annual rise is the bottom for greater than three years and Scotland’s annual inflation price has been typically slowing since a record-high annual rise of 11.7% in August 2023, the report stated.
In Northern Eire, the typical hire was £865 in July, the ONS stated. This was a 7.1% (£57) improve in contrast with a 12 months earlier.
Trade response:
Nick Leeming, Chairman of Jackson-Stops, feedback: “Right this moment’s figures replicate a slower market, with solely a average month-to-month improve of 0.8% in comparison with the 1.5% famous this time final 12 months. The weaker price of development displays pre-budget nerves throughout the trade alongside a decade-high stage of property on the market softening sellers’ pricing energy.
“But annual home costs have remained regular in August at 3% near final 12 months’s 2.8%, exhibiting that demand and provide fundamentals proceed to underpin momentum. Coverage hypothesis will proceed to cloud the outlook till the Finances is introduced, with October’s HPI knowledge launch – due in December – poised to disclose the impression of purchaser hesitancy and whether or not the same old Autumn bounce takes form.
“Jackson-Stops’ personal nationwide knowledge factors to a cooling market, the place regardless of market value determinations and listings rising in September year-on-year, viewings and candidates stay secure however subdued, reflecting wider warning amongst consumers of upper valued property within the run as much as the funds. That being stated, regional disparities have gotten extra pronounced, with upticks in month-to-month shopping for enquiries reported in Alderley Edge, Exeter, and Northampton. Chester and Cornwall high the charts seeing a close to 70% surge in purchaser enquiries respectively this month, pointing to particular lifestyle-driven demand.
“Trying forward, it’s clear the federal government should tread fastidiously with a property market susceptible to exterior shocks. Tax reform have to be designed to cut back friction while protecting costs secure, wherein sudden penalties are factored into present pondering. The fact is that many owners are asset-rich however cash-poor. Insurance policies that stifle transactions or deter funding danger reverberating far past the housing sector.”
Amy Reynolds, head of gross sales at Antony Roberts: “Home-price development is exhibiting additional indicators of flattening, which can reinforce the present market warning resulting in extra sellers adjusting their expectations as to what they will obtain for his or her properties.
“A sudden drop in costs is just not anticipated as mortgage charges stay comparatively low and lots of have loads of fairness of their properties and secure jobs. Effectively-priced, well-located properties proceed to carry out.
“Affordability stays the brake on the housing market. The excessive value of shopping for a brand new house is prohibiting many from making the strikes they wish to make, as they don’t really feel assured sufficient to take action, and that is resulting in some stagnation available in the market in sure areas.”
Richard Donnell, govt director of analysis at Zoopla: “Home worth inflation is slowing, however sturdy demand from first time consumers is protecting this measure of worth inflation larger than different measures. Finances uncertainty is resulting in a slowdown in gross sales and demand which is able to drive a continued slowdown in home worth inflation. The rise in first time consumers exercise is one purpose rental inflation has slowed to the bottom stage in nearly three years, alongside a 20% improve within the variety of properties for hire and rising affordability pressures on renters.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The ONS figures exhibiting a 3% annual improve in common UK home costs underline the market’s outstanding resilience within the face of financial headwinds. Whereas development has eased barely from July’s 3.2%, the info displays a market that has discovered a brand new, extra secure footing.
“The mixture of decrease mortgage charges, a wider alternative of properties, and worth development working beneath wage will increase is supporting purchaser confidence and serving to maintain wholesome transaction ranges. Crucially, we’re seeing life like pricing turn out to be a key differentiator: properties priced sensibly are promoting, whereas people who want worth reductions are taking 3 times as lengthy to safe a purchaser.
“The file quantity of properties on the market and the biggest gross sales pipeline in over 4 years level to an energetic closing quarter. Whereas geopolitical uncertainty and the upcoming Autumn Finances could trigger some to pause, total market fundamentals stay sound.
“Trying forward, we anticipate home worth development to stay regular via the tip of the 12 months, with firmer momentum constructing into 2026 as wage development and extra versatile lending standards feed via. That is excellent news for each movers and first-time consumers – a balanced market advantages everybody.”
Jason Tebb, president of OnTheMarket: “Regardless of being somewhat dated, the Land Registry figures present property values continued to rise on an annual foundation in August, with the typical worth £8,000 larger than a 12 months in the past. Whereas some warning and worth sensitivity prevails, centered consumers and sellers stay eager to proceed with their transactions, regardless of the unsure financial local weather.
“Whereas inflation was decrease than anticipated and unchanged at 3.8 per cent, it’s nonetheless practically double the Financial institution of England’s 2 per cent goal. With the Financial institution holding rates of interest at 4 per cent at its final assembly, debtors could also be disenchanted that charges usually are not coming down quicker however the focus at the least is on stability. Current price reductions have given an actual enhance to purchaser and vendor confidence and exercise over the previous 12 months, though affordability nonetheless stays a problem and is protecting property costs in examine to an extent.
“With the Finances imminent, a spotlight from policymakers on stability, aiding confidence and supporting the housing market – which is so essential to the broader financial system – is essential.”
