The UK housing market has reached yet another milestone as asking prices continue to climb. According to the latest Halifax figures, the average property price now stands at just under £300k (£299,331) – which is a new record high.

Some may welcome the fact that prices have enjoyed their third month of unfettered, consecutive growth, but younger buyers and those yet to get on the ladder will be wondering how on Earth they will ever be able to buy a home when prices keep getting further out of reach.

This is precisely why Matthew Douglas’ Thrive by 35 initiative has never been more important. Let’s explore why.

UK house prices hit record high in 2025

House prices rose by 0.3% in August, which followed a 0.4% increase in July and 0.1% in June. On the surface, these are small changes, but when we take into effect how costly homes can be, it becomes a genuine threat that promises to price would-be-buyers out of the market.

Overall, the story is one of a market that refuses to cool, even as wages and borrowing power remain under pressure. While it’s good news for sellers and those looking to downsize, it makes the scale of the problem exponentially more daunting for young buyers.

What rising house prices mean for first-time buyers

House prices are still high compared to household incomes, even with slight dips in some areas. Let’s consider the details: 

  • The average first-time buyer property costs £237,577.
  • Deposits remain one of the biggest hurdles, often running into tens of thousands of pounds.
  • Mortgage rates, though stabilised from last year’s highs, are still proving sticky and even edging higher in some cases.

This is part of a longer-term trend. Homeownership among under-35s has fallen sharply, from around 59% in 2000 to just 39% today, while average house prices have risen by around 244% over the same period. 

Thrive by 35: free support for young buyers

Our exciting Thrive by 35 initiative is designed to give aspiring homeowners the tools they need to get ahead. It’s about building better savings habits early, so deposits become more achievable. It focuses on helping young buyers to understand the nuances of mortgages and affordability to plan realistically for the future. It explores how you too can take advantage of investment opportunities to grow funds in line with long-term goals.

If property prices remain high (or, more likely, grow ever higher) then the best defence is preparation and expert insight. Thrive by 35 helps you to start now, not later, so that you’re ready to act when the time is right.

How to plan for homeownership in 2025

For those who want to buy their first home, waiting for prices to fall isn’t an option because prices generally keep climbing higher 

Starting early with a focused plan gives you the best chance of overcoming affordability challenges and securing your place on the ladder.

Thrive by 35 exists to make that possible. By supporting savers and would-be homeowners with insightful guidance, strategy, and smart financial planning, you’ll have the best chances of building up enough savings faster than property prices can rise. 

Get in touch to find out more about how Thrive by 35 can help you plan for tomorrow, starting today (or, if you’re already a homeowner, send this blog to someone who is thinking of taking their tentative first steps to becoming a homeowner).

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Want to put your home-buying concerns to us directly? Send your questions to our probing new podcast, Beyond the Boardroom. Email us at info@matthewdouglas.co.uk.