UK house prices rise, but Autumn Budget headwinds remain warns RSM UK
According to today’s UK House Price Index from HM Land Registry, UK average house prices rose 3% in the year to August 2025, with a monthly increase of 0.8%. The average price of a property in the UK in August 2025 was valued at £273,000.
Stacy Eden, Head of Real Estate at RSM UK, comments: “Today’s UK House Price Index reveals a 3% annual rise in average house prices to £273,000 in August 2025, with a modest monthly increase of 0.8%. While this suggests resilience in the housing market alongside healthy levels of transactions, the outlook for the remainder of the year is less certain, which will impact house prices. Buyer demand is softening, as evidenced by RICS reporting a second consecutive monthly fall in new buyer enquiries and a decline in agreed sales.
“The Bank of England’s latest Money and Credit data also shows a dip in mortgage approvals, an early sign of waning confidence among prospective buyers. A market cooldown is to be expected amid growing uncertainty around potential tax reforms in the Autumn Budget, including speculation on replacing Stamp Duty Land Tax and increasing levies on rental income for landlords. This, coupled with persistent inflation at 4% and a subdued economic outlook are creating significant headwinds for the market.
“London is bearing the brunt of this slowdown, with the Bank of England’s Agents’ summary highlighting weak demand and gloomy sentiment in the capital, where prices fell 0.3% year-on-year. Central boroughs, where average prices sit around £1m, have seen double-digit declines, driven by concerns over wealth taxation, non-dom reforms, and proposed changes to inheritance tax.”
He added: “The residential market continues to be influenced by affordability constraints and a chronic lack of supply, so it is essential the government recognises the impact of these pressures, particularly in London where development has stalled. A commitment to streamlining planning, maintaining stable property tax policy, and ensuring building safety regulations do not hinder progress will be key to restoring viability and confidence in the sector.”