Insight: The Housing Market - August 2025

The latest Halifax House Price Index shows a stable and improving national property market, with greater upward movement than we’ve seen so far this year. Affordability looks to be gradually improving, but we’re still to see the impact of those coming to the end of 5-year fixed term mortgages that were taken out during the buoyant and ‘cheap’ pandemic era. It’s not likely to impact average prices, per se, but it could influence market dynamics while these households tighten budgets to afford new mortgage deals.

Below we bring you a summary of the current property market, both nationally and in Kent. We help you understand what’s relevant to you, whether you’re a buyer or seller.

The Headline Stats and Facts

• Average selling price: £298,237, a +0.4% rise on last month.
• Property price increases: Annual rate of growth is +2.4%
• Interest rates: 4.25% (dropped from 4.5% on 08 May).
• Inflation: 3.6%, continuing to nudge upwards above the Bank of England target of 2%.
• RICS net balance score: RICS data shows an improved market. New buyer enquiries recorded a net balance of +3% up from -22%. Agreed sales improved to -3% compared to -25%.  New instructions recorded a net balance of +3%.

Kent-Specific Stats

• Average time on market: Properties in Kent currently spend an average of 152 days on the market, this is 6% less than this time last year.
• Number of properties for sale: There are 22,878 properties for sale in Kent, up 13% on this time last year.
• Average selling price in Kent: £428,827, staying steady with last month.

What Does This Mean?

Amanda Bryden, Head of Mortgages at Halifax, says,

“While the national average remains close to a record high, it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type. Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.”

What this month’s data shows us is that the national property market is both resilient and buoyant. Nonetheless, growth is steady and sustainable.

However, we do need to look at the local picture for a better understanding.

What About Kent?

While the national average house price continues to edge upwards, in Kent things are more level. The county experienced a notable drop in average property prices last year and we’re still recovering from this. Therefore, while average house prices are now edging upwards each month, they haven’t yet fully recovered their lost ground. This means that house prices are actually broadly similar to 2022 levels. Nonetheless, this is still nearly double the national average.

The market is strong and active though. Properties are moving considerably faster than this time last year. This is particularly true for starter homes. For example, terraces are selling 12% faster than a year ago. Three-bedroom properties are on the market for 10% less time than last year. Balancing this, the good news is that there is more choice for buyers than a year ago, with 13% more properties on the market.

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