Here is a summary of the latest UK economic data focusing on the housing market , covering house price movements, mortgage approvals, and construction activity as of August 2025 (Q2 2025 for construction data).

House Prices: Growth Slows, Regional Divides Deepen

The UK housing market saw continued but moderating growth:

• Annual Growth: House prices, as measured by the UK House Price Index, increased by 3.0% between August 2024 and August 2025.
• Monthly Change: On a seasonally adjusted basis, the average house price saw a modest increase of 0.2% between July and August 2025.
• Regional Trends: Price changes varied significantly across the UK:
  • Fastest Growth: The North East, Northern Ireland (Q2 2025 data), and the North West experienced the quickest growth rates.
  • Price Fall: London was the only region where house prices fell during this period.

Mortgage Approvals: Stalling Momentum

Mortgage approvals, a leading indicator of future house sales, show the market stabilizing at a lower level following the post-lockdown surge:

• August 2025 Approvals: There were 64,680 mortgage approvals for house purchases.
• Annual Comparison: This figure is broadly similar to a year ago (64,983 in August 2024).
• Monthly Decline: Approvals were down 1% compared to July 2025, suggesting a slight loss of momentum in the market.

House Building: Starts Rise, Completions Fall

House building activity in England saw mixed results in the second quarter of 2025 (Q2 2025):

• Housing Starts Increase: There were 29,490 house building starts (seasonally adjusted), representing a 2% increase compared with the previous quarter, and a 16% increase compared with Q2 2024.
  • (Note: Starts are still significantly below the peak of 68,350 recorded in Q2 2023, which was driven by builders accelerating work to preempt new energy performance and electric vehicle charging regulations).
• Completions Decrease: There were 34,990 house building completions (seasonally adjusted), a 2% decrease compared with the previous quarter, and a 19% decrease compared with Q2 2024.