UK & North West Housing Market Update: August 2025 Data and What It Means

Headline UK Figures

According to the HPI, the average property price in the UK in August 2025 was £273,000. Annual price growth across the UK was estimated at 3.0%, with a monthly increase of around 0.8%. This indicates steady but moderated growth, as the market moves away from the higher-growth peaks seen in previous years.

Key National Takeaways

• UK average property price: £273,000
• Annual growth: 3.0%
• Monthly growth: 0.8%
• Sales volumes remain under pressure: mortgage approvals fell in August, showing a market waiting for clarity

Market sentiment remains cautious: while prices are rising, the rate of increase is modest, and many buyers are taking longer to decide. For agents, this means that pricing strategy, marketing, and response speed are more important than ever.

North West Region Spotlight

Zooming in on the North West, the HPI reveals some especially relevant numbers: the average price in the region stood at £216,789 in August 2025 - with annual growth of 4.5% and monthly growth of 1.6%. This puts the region ahead of many parts of England in terms of growth rate.

What this means for the North West

• Average price (£216,789) remains below many southern regions, offering affordability advantages.
• A healthy annual growth rate (4.5%) indicates the market remains active and still turning over at pace.
• Monthly growth (1.6%) suggests recent momentum - useful for agents and landlords positioning correctly.

In practical terms, these figures suggest the North West remains a strong market for investment, sales and lettings - particularly when compared with more stretched markets in the South and London.

Regional Comparisons & Context

It's worth placing the North West's performance in broader context:

• North East: Highest regional growth at around 6.6% annual increase - showing northern markets are in the ascendancy.
• London: Average price ~£565,567 but with annual price change of -0.3% - signalling downward pressure in the capital.
• South East & South West: More muted growth (1.8% and 2.4% respectively) despite higher average price levels.

Our message for the North West: you benefit from a "sweet spot" - moderate price levels, healthy growth and a comparatively resilient market dynamic.

What Agents, Landlords & Buyers Should Look Out For

For Estate Agents

- Emphasise the North West's value proposition: "Growth above the national average, prices still below the national average."
- Re-focus marketing around affordability plus growth potential - this is particularly attractive to both first-time buyers and investors.
- Monitor pricing carefully: With growth of 4.5% in the region, a 2-3% over-pricing could materially affect time on market.

For Landlords and Investors

- With moderate house-price growth and good rental demand in many North West towns, the region continues to offer strong potential.
- Focus on stock that delivers good yield and capital growth - e.g., mid-terraces, purpose-built flats near transport, or areas undergoing regeneration.
- Ensure your property management is tight; the market is less forgiving than in boom years.

For Home Buyers

- If you're buying in the North West, you have one of the strongest growth regional markets, making it worthwhile from a long-term perspective.
- However: With growth above the national average, negotiate hard - don't over-pay simply because momentum seems attractive.
- Consider future-proof factors: energy costs, transport access and local amenities are increasingly influencing buyer decisions.

Risks and Considerations

While the data is encouraging, it's not without caveats:

• Affordability pressures: Even in the North West, mortgage rates and cost of living weigh on many potential buyers.
• Regional variation: Growth of 4.5% is an average - some town- and neighbourhood-level markets may see weaker performance or stagnation.
• Transaction volumes: The HPI warns that sales volumes are provisional and may lag - slower markets may hide underlying weakness.
• External economic factors: Interest rates, cost inflation, taxation and policy changes can alter market direction quickly.

Outlook for the Coming 12-18 Months

We anticipate the North West housing market to remain fairly stable with moderate growth. Key expectations:

• House price growth in the region is likely to sit around 3-5% per annum, given current momentum.
• Areas undergoing regeneration or offering strong connectivity (e.g., town-centre apartments, commuter zones) will outperform average growth.
• Markets reliant on growth from investment or second homes may face more volatility.

For agents, landlords and buyers active in the North West, the emphasis will be on quality, location and value, rather than speculative uplift alone.

In a year where many regions face cooling markets or negative growth, the North West stands out for its resilience. With an average price below many UK regions, solid annual growth of 4.5% and strong monthly momentum, the region offers a compelling proposition for a wide range of housing market participants.
If you're part of the property industry - whether selling, letting or buying - focusing on the North West makes sense. With careful evaluation, prudent purchase decisions, and strong local knowledge, now is the time to participate in a market that offers both opportunity and realism.