UK house prices fall for 2nd consecutive month
UK house prices slipped by 0.1% in August 2025, landing at an average of £271,079—surprising many who expected a small rise.
Growth has slowed too, with annual increases dropping from 2.4% in July to 2.1%.
Nationwide's chief economist Robert Gardner points to high mortgage costs making it tough for buyers to stretch their budgets.
Mortgage costs remain high
Even after the Bank of England trimmed its base rate to 4%, getting a mortgage isn't much easier—average two-year fixed rates hit 4.96% by late August.
Rising food and travel costs pushed inflation up to 3.8% in July, piling on more pressure for anyone trying to buy a home.
Plus, potential new property tax changes under consideration for this autumn could shake up the market for pricier homes in London and the southeast.