House prices in Wales have continued to climb, with average property values up 1.6% year-on-year to £227,786, according to the latest Halifax House Price Index. While the pace of growth has slowed in recent months, this still represents steady progress against a backdrop of wider economic pressures.
Across the UK, prices rose by 0.3% in August, pushing the average property value to a new record high of £299,331. Annual growth eased slightly to 2.2%, marking the third consecutive month of increases.
Amanda Bryden, Head of Mortgages at Halifax, said:
“UK house prices rose again in August, up by +0.3% (£932), marking the third consecutive monthly increase. 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.
“Affordability remains a challenge, but there are signs of improvement. Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%.
“Combined with strong wage growth – which has outpaced house price inflation for nearly three years – this is giving more prospective buyers the confidence to take the next step.”
First-time buyers in Wales and across the UK are beginning to benefit from these changes. Despite the overall rise in prices, the average property value for first-time buyers has edged down in recent months to £237,577. On a 95% loan-to-value mortgage over 30 years, that could mean monthly repayments of around £1,179, compared with an average UK private rent of £1,343.
Amanda Bryden added:
“Though prices have edged higher overall, the slight fall in first-time buyer property values is a welcome shift for those looking to get on the ladder. For those able to save a deposit, the sums increasingly make sense, with mortgage repayments now often coming in lower than renting.”
