House prices here in Leeds remain feisty as UK average approaches £300,000
House prices remain feisty in Leeds as the UK average leapt to a new record high - and could hit £300,000 by the end of the year.
But there still remains a very clear north/south divide, says Halifax - publishers of todays Halifax House Price Index.
It shows the average house price in Yorkshire and the Humber is now £217,674 which is a 4.1% annual increase. Leeds itself tracks higher. The average house price in Leeds was recorded as £238,000 in June 2025, up 5.2% from June 2024, according to the ONS (Office of National Statistics).
The Halifax House Price Index shows prices increased by 0.3% in August, marking a third consecutive monthly rise. The average property price in the UK is now £299,331 – a new record high – while the annual rate of growth eases slightly to 2.2%, down from 2.5% in July. Though the average price paid by first-time buyers fell slightly as affordability improves. The typical first-time buyer property now costs £237,577, down by 0.6% since May.
Amanda Bryden, head of mortgages at Halifax, said: “The average property price now stands at £299,331 – a new record high – although annual growth has eased slightly to 2.2%. The story of the housing market in 2025 has been one of stability. Since January, prices have risen by less than £600, underlining how steady the market has been despite wider economic pressures. Though overall prices have edged higher, average property values for first-time buyers moved in the opposite direction over the summer, a trend that will be welcomed by those looking to get on the ladder.
“For those able to overcome the hurdle of saving a deposit, the numbers increasingly stack up. The typical first-time buyer property now costs £237,577, down 0.6% since May.”
Babek Ismayil, Founder at home-buying platform OneDome said: “Average prices are closing in on the symbolic £300,000 level and may break it before the year end. Prices rose again in August but the annual rate of growth slowed. With inflation rising to 3.8% and the interest rate vote so close in August, only narrowly delivering a cut, the chances of another reduction in the base rate this year are now much reduced. Mortgage rates have been edging up slightly in recent weeks, too, which could see buyer and seller confidence plateau.”
Emma Jones, Managing Director at When thebanksaysno.co.uk said she worries about the effect of the Autumn Budget. She added: “Average property prices are now a hair's breadth away from £300,000. August was much busier than usual in our experience, with buyers very much in the driving seat and negotiating hard on price.
"September usually sees an uptick in demand and activity, as the school holidays come to an end, but with the Autumn Budget looming, it could be a quieter Autumn than usual. Many people may decide to sit on their hands and see what the Budget delivers before making any major decisions about buying or selling a home.”
Andrew Montlake, CEO at Coceco , said he expected demand to increase in September. He added: "Stable rather than stellar is probably a good description of the property market at present. Demand was reasonable in August following the base rate cut, although swap rates have nudged up since with a few lenders also repricing upwards slightly.
"September usually sees an uptick in demand, but it's hard to know how the looming Budget could impact confidence. What we do know is that the property market is highly resilient and very good at weathering storms."
Daniel Hobbs, CEO at New Leaf Distribution, added: “A slow and steady rise in prices seems like a fair assessment of the market between now and the end of the year. Prices will continue to be supported by an ongoing lack of supply as we are simply not building enough homes. The Autumn Budget could see many prospective buyers wait and see before committing to what, for many, is their biggest purchase
Looking across the UK, Halifax said Northern Ireland continues to lead the UK for annual house price growth, with average property values up by 8.1% annually, although this marks a slight slowdown from 9.3% annual growth recorded the previous month. Scotland saw the next strongest annual increase, with prices rising by 4.9% annually in August. Across England, there remains a “clear north/south divide”, Halifax said.
The North East, North West and Yorkshire and the Humber all recorded annual growth above 4%. By contrast, the South West has seen house prices fall by 0.8% on average over the past year, making it the first UK nation or region to record an annual decline since Eastern England in July 2024.
Here are average house prices followed by the annual change, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):
- East Midlands, £245,299, 1.6%
- Eastern England, £334,860, 1.1%
- London, £541,615, 0.8%
- North East, £179,799, 4.7%
- North West, £243,776, 4.5%
- Northern Ireland, £217,082, 8.1%
- Scotland, £215,594, 4.9%
- South East, £387,509, 0.3%
- South West, £301,134, minus 0.8%
- Wales, £227,786, 1.6%
- West Midlands, £259,575, 1.8%
- Yorkshire and the Humber, £217,674, 4.1%