"Slower house price inflation reflects higher stamp duty costs for home buyers and the impact of Budget uncertainty on the market with annual price falls across London"
- Richard Donnell - Zoopla
House price inflation across the UK slowed to 1.7% in the year to October 2025, down from 2.0% the previous month, according to provisional estimates from the Office for National Statistics.
The average UK property price reached £270,000 in October 2025, representing a £5,000 increase compared with the same period last year. Between September and October 2025, prices fell 0.1% on a non-seasonally adjusted basis, contrasting with a 0.2% rise during the same period in 2024. However, seasonally adjusted figures showed a 0.1% monthly increase.
Regional variations remained pronounced across the nations. Scotland recorded the strongest growth among the home nations at 3.3%, with average prices rising to £192,000, an annual increase of £ 6,000. This represented a slowdown from the 4.6% growth recorded in the 12 months to September 2025.
Northern Ireland continued to lead all regions with 7.1% annual growth in Q3 2025, pushing average prices to £193,000, up £13,000 year-on-year.
England saw more modest growth of 1.4%, with average prices reaching £292,000, marking a £4,000 annual rise. This was slightly lower than the 1.5% increase recorded in the year to September 2025.
Wales recorded 1.5% annual growth, with average prices at £211,000, up £4,000 from a year earlier. This compares with 2.3% growth in the 12 months to September 2025.
Within England, the North East demonstrated the strongest performance with 5.0% annual growth in the year to October 2025, accelerating from 3.0% the previous month. London remained the weakest performer, with prices falling 2.4% annually, a steeper decline than the 1.6% drop recorded in the year to September 2025.
Richard Donnell, Executive Director of Zoopla, said: "Slower house price inflation reflects higher stamp duty costs for home buyers and the impact of Budget uncertainty on the market with annual price falls across London."
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says, “The outlook for the London property market in particular is becoming more constructive. Price growth has been muted, particularly at the upper end, but values have broadly stabilised as buyers adjust to higher borrowing costs. In London, where affordability and sentiment are highly rate-sensitive, even small shifts in expectations can have an outsized impact on activity.
“A 25 basis point cut from the Bank of England this Thursday now looks almost nailed on, with markets also pricing in the possibility of a further cut early next year. That brings us closer to the widely anticipated neutral rate of around 3 to 3.5 per cent. For London buyers, this is already feeding through to more competitive mortgage pricing and renewed confidence, which should underpin transaction volumes and support modest price growth, rather than a sharp rebound or further correction."
Nathan Emerson, CEO of Propertymark, comments, “Now that any uncertainty regarding anticipated Stamp Duty reforms across England and Northern Ireland in the build-up to the Autumn Budget is behind us, we should see the flow of housing transactions returning to a much smoother and expected seasonal trend."
“As we head into the new year, we traditionally see a positive uplift in activity with many people choosing to market their property directly after Christmas, as well as buyers firing up their ambition to move as we approach springtime."
“Boosting the supply of new homes to meet an ever-increasing demand remains integral to overall house price stability. With firm promises from various governments across the UK, it will be a case of keeping a close eye on progress regarding precisely how many homes are completed as the new year plays out.”
