"Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year"
- Amanda Bryden - Halifax
UK house prices fell marginally by -0.3% in September, following a +0.2% rise in August, according to the latest Halifax data. The average UK property now stands at £298,184, with annual growth softening to +1.3%, down from +2.0% the previous month.
Regional analysis
Northern Ireland continued to outperform all other UK regions, recording annual growth of +6.5% to £216,496, despite easing from +7.9% in August. Scotland followed with +4.5% annual growth to £215,588, while Wales posted a more moderate +1.9% increase, bringing the average home to £227,845.
In England, the North East led annual growth at +4.8%, with prices averaging £180,443, followed by the North West at +3.9%. By contrast, the South West saw a second consecutive annual decline, down -0.2% to £303,067.
London and the South East both registered minimal growth, up +0.6% and +0.2% respectively. The capital remains the country’s most expensive market, with an average value of £543,497.
Market stability and buyer sentiment
“The average UK house price edged down by -0.3% (£794) in September, following a modest rise in August. The typical home now costs £298,184,” said Amanda Bryden, head of mortgages at Halifax. “Over the past 12 months, prices have grown by +1.3%, the slowest annual rate since April 2024. This slight monthly dip in house prices reflects a housing market that has remained broadly stable, prices are up +0.3% since the start of the year.”
Bryden added that regional variations and property type continue to play a significant role in pricing dynamics. “Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year,” she explained.
Guy Gittins, CEO of Foxtons, observed that “market momentum remains steady and this underlying stability is encouraging buyers and sellers back into the fold, albeit with a degree of caution ahead of November’s budget.” He added, “For those looking to sell, the key to success is a pragmatic approach to pricing in line with current market conditions, but those looking to complete their sale before Christmas need to be entering the market now with the right agent and an added sense of urgency.”
Marc von Grundherr, director of Benham and Reeves, commented, “The UK property market has weathered a year of market uncertainty and buyer indecision with house prices continuing to show positive annual growth, albeit we’ve seen a marginal month on month decline due to an air of hesitation ahead of next month’s Autumn Statement.” He added that while political pledges to reform the homebuying process may eventually help, “the mere suggestion of change could actually cause the market to stall in the short term, as buyers hold out for greater certainty and protection that simply isn’t on the immediate horizon.”
Verona Frankish, CEO of Yopa, explained, “It’s been very much a case of the tortoise not the hare when it comes to the performance of the UK property market this year and this has arguably been a far healthier market landscape for both buyers and sellers alike.” She continued, “Slow but sustainable rates of house price growth have ensured that sellers are motivated to move, whilst buyers aren’t being priced out by sizable shifts in property affordability.”
Nathan Emerson, CEO of Propertymark, commented, “A fall in house prices reflects the ongoing pressure on the housing market from higher borrowing costs, economic uncertainty, and affordability constraints. While price declines may raise concerns among homeowners and sellers, they also present opportunities, particularly for first-time buyers who have struggled with stretched affordability in recent years.” He added, “As we look ahead, the key to restoring momentum lies in improving market confidence, whether through interest rate stability, better mortgage accessibility, or policy measures that ease the transaction process.”
Tom Bill, head of UK residential research at Knight Frank, said, “Sellers are getting the message that house prices are under pressure due to higher levels of supply and a creeping mood of caution as November’s Budget approaches. Stable mortgage rates have supported demand but we believe prices will continue to dip modestly before ending the year broadly flat.”
