UK house prices inched up month-on-month for the third successive time to a new record high, but prices paid by first-time buyers eased slighty in August.
The average property price in Britain is now £299,331, according to the data from lender Halifax, which is up less than £600 from the start of the year.
Annual house price growth eased slightly to 2.2% from 2.5% in July, with the post-pandemic North/South divide continuing in England, where the North East saw the fastest growth, with Northern Ireland the strongest growth around the UK.
"The story of the housing market in 2025 has been one of stability," said Amanda Bryden, Halifax's head of mortgages, with prices edging up slowly since the start of the year despite wider economic pressures.
Halifax expects a further "slow but steady" ascent for property prices through the rest of this year, she said.
While affordability remains challenging, Bryden pointed to "signs of improvement" amidst falling interest rates over the past two years, while Bank of England data this week showed a rise in mortgage approvals to a six-month high.
For first-time buyers, average property values fell 0.6% since May and, as wage growth has outpaced house price inflation for nearly three years, she said "this is giving more prospective buyers the confidence to take the next step".
Prices have "barely got off the ground in 2025", said Jonathan Hopper, CEO of Garrington Property Finders, in his analysis of the data.
"In some parts of the country the number of sellers far outstrips the number of serious buyers. In these areas, sellers are having to price their homes keenly just to grab buyers’ attention, and many are offering discounts or sweetening the price in other ways - perhaps by making a contribution to the buyer’s stamp duty costs - to get a deal done."
He noted that average prices fell by 0.8% in South West England over the past 12 months, as large numbers of second homes and holiday let properties were put up for sale, while prices have been creeping up very slowly in London and the commuter belt.
"Despite the strength of their negotiating position, many buyers remain cautious – though we are seeing different behaviour at different price points."
He said first-time buyers are "having the best time of it", possibly as they benefit most from falling interest rates through typically having the biggest mortgage relative to the purchase price.
"Higher up the property ladder, where purchases are more likely to be discretionary, many buyers are adopting a ‘wait and see’ approach as rumours swirl about major tax changes coming in the Autumn Budget.
"Against that uncertain backdrop, buyers’ offers tend to reflect these unknown risks. Deals are still being done, but only pragmatic sellers are likely to succeed in what is set to be a very price-sensitive autumn market. On the price front, autumn will be about balance, not boom or bust."