Annual house price growth dipped to 3% in the year to August, down from 3.2% in July, new figures from the Office for National Statistics (ONS) have shown.

The latest ONS House Price Index revealed that this took the average house price to £273,000 in August.

Across the home nations, the ONS figures revealed that average house prices increased by 2.9% in England to £296,000, by 2% in Wales to £211,000, and by 4% in Scotland to £194,000.

In Northern Ireland, quarterly ONS data showed that the average house price was £185,000 in Q2 2025, up 5.5% from the April to June period last year.

CEO of Enness Global, Islay Robinson, said the latest ONS figures show that the housing market has “continued to tread water”, with the annual rate of growth softening.

“This is largely due to a high level of hesitation among buyers, particularly those at the higher end of the market – with London feeling the pinch to the greatest extent as the only region to have seen a year-on-year reduction in property values,” Robinson said.

“This caution is understandable. With Labour under pressure to plug the hole left by its out-of-control spending, those purchasing at higher price thresholds fear they may find themselves in the crosshairs come the Autumn Budget.”

Group distribution director at Chetwood Bank for ModaMortgages and CHL Mortgages for Intermediaries, Roger Morris, added: “Much of this reflects the looming spectre of the Autumn Budget, which is expected to introduce policies that would directly impact landlords and their investments.

“Changes to the tax landscape – whether through capital gains tax, stamp duty, or national insurance on rental income – would be particularly significant. Exact details remain scarce, so until the Budget is delivered, this uncertainty is likely to continue dampening market sentiment.”

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