"It’s a very price-sensitive market, which means that getting the price right at the start of marketing is vital to successfully finding a buyer"
- Colleen Babcock - Rightmove
The average price of property coming to market rises by 0.3% (+£1,165) this month to £371,422. This increase is below the ten-year average October bounce of +1.1%, as the decade-high level of property for sale limits sellers’ pricing power.
October typically sees a seasonal increase in activity and new seller asking prices as the market recovers from a quieter summer period.
However, according to the latest data released this morning by Rightmove, this month’s 0.3% rise is not enough to drive the usual autumn boost. Market activity across September shows a dip compared to last year, which was influenced by August 2024’s Bank Rate cut and early moves by some homebuyers in England aiming to avoid April 2025’s stamp duty increase. Ongoing uncertainty around the upcoming Budget has also tempered activity.
“Despite the overall resilience of the 2025 housing market, we’ve not got enough pent-up momentum or recent positive sentiment to spur the usual autumn bounce in property prices," said Colleen Babcock, property expert at Rightmove. "We’re experiencing a decade-high level of property choice for buyers, which means that sellers who are serious about selling have had to acknowledge their limited pricing power and moderate their price expectations."
"In addition, speculation that the Budget may increase the cost of buying or owning a property at the higher end of the market has given some movers, particularly in the south of England, a reason to wait and see what’s announced in the Budget.”
Year-to-date activity shows resilience
While September’s month-on-month figures show some slowdown, the market remains resilient when looking at 2025 so far:
New buyer demand is up 2% compared with the same period in 2024.
The number of new sellers coming to market is up 5%.
Sales being agreed are also up 5% year-to-date.
In contrast, September 2025 compared with September 2024 shows:
New buyer enquiries down 5%.
New sellers coming to market are down 5%.
Sales being agreed down 2%.
Babcock adds, “We’re now comparing market activity to a stronger period last year, which has resulted in some dips in year-on-year trends. This time last year, the first Bank Rate cut for four years in August 2024 boosted mover sentiment, while some home-movers in England, particularly in the south, began to take action to avoid April 2025’s stamp duty increase."
"It’s a very price-sensitive market, which means that getting the price right at the start of marketing is vital to successfully finding a buyer. Rightmove research shows that homes which receive an enquiry on the first day of marketing are 22% more likely to secure a buyer than homes which take over two weeks to receive their first enquiry.”
Regional divide widens
The modest 0.3% monthly price rise means that over the past year, national prices have fallen slightly by 0.1%. Annual declines in London and southern England have dragged the national average into negative territory. London’s prices are down 1.4%, and all four southern England regions have lower average asking prices compared with last year.
By contrast, Scotland, Wales, and the rest of England have seen asking price rises of at least 1%, illustrating a widening divide between the subdued south and the more robust north. Contributing factors include:
Higher stamp duty rates in southern England increasing the cost for home-movers.
Greater availability of homes for sale in the south requires sellers to be more competitive with pricing.
Less impact from stamp duty and potential Budget changes in more affordable regions.
Budget speculation and policy reforms
In addition to market trends, recent announcements by the Government and the Conservative Party have proposed major changes to the buying and selling process. Rightmove strongly supports measures aimed at increasing mobility and making home-moving easier and more affordable.
“It’s encouraging that housing continues to be a political priority with some radical changes being suggested," notes Babcock. "We’re all for policies which would speed up the home buying and selling process and make it easier for all involved, and we’re looking forward to helping the government with our twenty-five years of housing market data. Rightmove has been calling for stamp duty reform for some time now, and we believe that abolishing it completely would remove one of the biggest barriers to movement."
She adds, "We hope the Government considers how they could improve it in November’s Budget. Increasing the thresholds would be a help, but going further would be a huge step forward,” said Colleen Babcock.
Mortgage trends and buyer behaviour
“Mortgage rates have plateaued over the last month, with some average rates rising and others falling, as lenders hit the pause button leading up to the Budget," explained Rightmove's mortgage expert, Matt Smith.
"The cost of financing mortgages has come down again, so we’re likely to start seeing some very gradual drops in average rates soon. However, until the Budget at the end of November, we’re likely to see a very quiet market with few shifts in rates, as lenders wait to see how they may be affected by any policy announcements. Average mortgage rates, particularly two-year fixed rates, are still lower than they were a year ago. Combined with flat house prices and improved lending criteria, many home-movers may find their affordability significantly improved compared with last year."
In London, initial interest remains strong, but buyer commitment is lower, particularly from international enquiries. Marc von Grundherr, director of Benham and Reeves in London, explains:
“Mortgage rates have been largely trending downwards since the base rate began to stabilise and fall, but stubbornly high inflation continues to delay the pace of cuts that many had hoped for by now. This has left some buyers in a holding pattern, waiting for clearer signs of sustained affordability before committing."
"A great deal of the current hesitation can also be attributed to the upcoming Autumn Budget, with many buyers preferring to wait for clarity on taxation and wider economic policy before acting. Once this uncertainty has passed, we expect the market to gather pace. London may be trailing the rest of the country for now, but history shows it tends to outperform once momentum builds, and we anticipate that pattern will return as confidence strengthens.”
Nathan Emerson, CEO at Propertymark, comments, "Although there has been a softening of activity year-on-year, it is encouraging to see that the UK’s housing market continues to adapt to economic pressures. While year-to-date figures show positive signs, including a rise in buyer demand and sales agreed, the month-on-month slowdown reflects a market shaped by caution, price sensitivity, and political uncertainty ahead of the Autumn Budget.
“Affordability challenges, high property choice, and the impact of recent Stamp Duty changes are clearly weighing on the confidence of buyers and sellers alike, particularly in the South of England. Our member agents are reporting similar trends on the ground, with committed buyers and sellers having to act decisively and price competitively to achieve results.
“Propertymark supports reforms that will streamline the home buying and selling process and improve market mobility. However, more needs to be done to ease transactional costs and boost supply, particularly in regions hardest hit by the current property tax policy. We hope the UK Government uses the upcoming Budget to deliver meaningful support for the sector, including a full review of Stamp Duty, to help unlock movement across all parts of the market.”
Tom Bill, head of UK residential research at Knight Frank, commented, “Transaction numbers over the last six months have been supported by stable mortgage rates and softer prices as sellers come to terms with the fact that high levels of supply mean it is a buyer’s market. However, demand is wavering for the second successive year as the autumn market gets underway, as speculation over the Budget becomes a prolonged and frustrating game of ‘guess the tax rise’.”
James Nightingall, founder of HomeFinder AI, says, “The majority of house hunters are stalling their search amid the Autumn Budget. This is resulting in fewer transactions and some sellers reducing their asking price to attract offers. First-time buyers, on the other hand, have perhaps been the one demographic that has shown a similar level of motivation seen during October last year, with many aiming to move into their new property by the end of the year.”
