UK house prices kept rising as the average home reached £299331 based on the latest Halifax House Price Index. Prices have now increased for three consecutive months and hit a new record high. Although values continue to rise the yearly growth rate dropped slightly to 2.2 percent from 2.5 percent in December . Economists predicted only a modest increase last month but the Halifax data shows the market is performing better than most forecasts suggested.
Northern Ireland’s Surge Outpaces All UK Regions
Northern Ireland continues to lead the property market with house prices rising by 8.1 percent over the last year. This figure represents a slight decrease from the 9.3 percent growth recorded in December but remains the highest in the UK. Scotland experienced a 4.9 percent increase in property values during the same period. The North East & North West regions along with Yorkshire also showed strong performance with gains exceeding 4 percent. Meanwhile the South West region has entered negative territory as prices dropped by 0.8 percent compared to the previous year.
How 2025 Trends Ease Pressure on First-Time Buyers
First-time buyers are seeing some positive signs in the housing market. Halifax found that the average price paid by people buying their first home has dropped by 0.6 per cent since May and now sits at approximately £237577. This small decrease could help buyers who have been finding it hard to afford a home after years of rapidly rising prices. Halifax also noted that house prices across the board have remained largely unchanged this year with an increase of less than £600 since January. This demonstrates how steady the market has been throughout 2025.
UK Property Gaps Widen as Regions Move Differently
The latest data shows a growing north-south divide in housing trends. Regions like Northern Ireland and Scotland are experiencing much stronger growth than southern areas. London recorded only a 0.8 percent annual rise as the most expensive part of the country. The average home there now costs £541615. This slower growth reflects affordability pressures and weaker demand in the capital even though prices remain well above the national average.
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What Analysts Reveal About the 2025 Housing Pattern
Amanda Bryden leads the mortgage division at Halifax and sees the current market as stable. She notes that mortgage deals remain competitive while wages are growing faster than house prices. Consumer confidence has also improved and these elements are helping to maintain market balance. Analysts caution that difficulties persist despite this stability. Mortgage rates are climbing and employment uncertainty continues to affect the market. The upcoming Autumn Budget has also created speculation that may impact confidence in the coming months. Several experts think that both buyers and sellers might delay major decisions until there is more information about potential changes to housing policies & taxation.
Future Market Signals Investors Should Watch Closely
For buyers the slight decrease in first-time buyer prices might create an unusual chance to enter the property market. For sellers, the situation varies depending on location. Properties in Northern Ireland and northern England are increasing in value while the South West and London are experiencing slower growth. The market could change again when the Budget arrives in November based on what the government decides about housing and taxation. At the moment, Northern Ireland remains at the front of the pack. This demonstrates that strong regional performance is keeping the UK housing market active even though broader economic conditions remain uncertain.
