NextFin news, On Tuesday, September 23, 2025, Halifax, a leading UK mortgage lender, published its latest house price index revealing that average UK house prices have experienced a slight decline in recent months but remain broadly stable overall.
The data indicates a small monthly decrease in house prices, with an overall drop of 0.2% since the beginning of 2025. However, over the past year, house prices have increased by 2.5%, adding approximately £7,000 to the value of a typical home. The average property price currently stands at around £296,648.
House price growth has been most pronounced in Northern Ireland, where prices have surged by 8.6% year-on-year. London continues to hold the position as the most expensive housing market, with average property prices reaching £542,017.
Amanda Bryden, head of mortgages at Halifax, commented on the findings: "These small monthly movements point to a housing market that has remained largely stable, with average prices down by just 0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty." She added that the housing market has "shown resilience" despite ongoing economic uncertainties and pressures on household incomes.
Affordability remains a significant challenge in the UK housing market, with house prices still high relative to incomes. Nevertheless, lower mortgage rates and steady wage growth have helped sustain buyer confidence.
Analysts reacting to the Halifax index noted that there is no clear evidence of a significant market weakening. Instead, the market's recovery is progressing more slowly and less robustly than initially anticipated.
The Halifax house price index is considered a key indicator of UK housing market trends, providing timely insights ahead of official government data releases, which typically have a lag of several weeks.
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