The annual rate of growth in property values in August was 3.0%, according to the ONS’s provisional estimate, down from 3.2% in July

Annual house price growth slowed in August, with London being the only English region where property values dropped, according to Office for National Statistics (ONS) figures.

The annual rate of growth in property values in August was 3.0%, according to the ONS’s provisional estimate, down from 3.2% in July.

Average house prices increased to £296,000 (2.9% annual growth) in England, £211,000 (2.0%) in Wales, and £194,000 (4.0%) in Scotland, in the 12 months to August 2025.

The average house price for Northern Ireland was £185,000 in the second quarter of 2025, marking a 5.5% annual increase.

Within England, the North East had the highest annual house price inflation in August, at 6.6%. Annual house price inflation was weakest in London, with average house prices falling by 0.3%.

ONS head of housing market indices Aimee North said: UK annual house price inflation slowed in August, with the average UK house price now around £273,000. The North East once again showed the highest annual increase and London is the only English region showing an annual fall.

UK annual private rents inflation has eased for the ninth consecutive month, and annual growth has slowed for all countries across the UK, North said.

Some housing market experts said uncertainty around the autumn Budget has had an impact on sentiment.

The figures were released as the ONS said Consumer Prices Index (CPI) inflation was 3.8% in September, remaining at the same level as both July and August.

James Evans, chief executive at estate agent Douglas & Gordon, said: Many buyers who hit pause earlier in the year are now back in the market, encouraged by more stable rates and improving affordability.

It’s a positive sign, but we’re not out of the woods yet. Policy uncertainty ahead of the autumn Budget is already making some buyers cautious, particularly at the higher end, he said.