Your monthly UK housing market update. Covering sold prices, asking prices, surveyor sentiment and what’s next for the property market.
Mortgage rates rise, and the market begins to feel the strain.
HM Land Registry – Sold Prices
Four months of slowing sold price growth, and the national picture looks decidedly flat.
Annual UK sold price inflation eased from 1.2% to just 0.9% in August, with the average home now worth £273,000. Prices rose 0.3% during August itself. But strip out seasonal fluctuations, and prices actually fell 0.2%.
The regional divide remains striking, and even stronger markets are losing momentum. The North East led England with 3.2% annual growth, down from 4.7% in July. London prices fell 2.2%, while Wales (3.1%), Scotland (2.9%) and Northern Ireland (9.2%) continue to outperform England’s modest 0.4%.
The slowdown is also visible in activity. Transactions fell 1.5% to 95,000, some 1.9% below last year, while mortgage approvals slipped to 54,900 against a six-month average of 60,100. Buyers certainly haven’t disappeared, but fewer are committing right now.
Rightmove – Asking Prices
October brought another rise in asking prices: +1% (£3,575), taking the national average to £371,015. Yet prices remain virtually unchanged from last year (-0.1%), and the regional figures tell a fascinating story.
London recorded a 2.5% monthly jump, recovering some of its 6.0% summer losses. But don’t mistake that for a recovery. Prices remain 1.7% lower annually, 38% of listings are reduced, and homes take an average of 78 days to find a buyer.
Meanwhile, previously resilient markets are adjusting downwards. Asking prices fell 2% in the North East and 1.9% in Scotland, as higher borrowing costs bite.
And they’re biting hard. The average two-year fixed mortgage rate has climbed from 4.25% in February to 5.55%, adding around £250 to monthly repayments. Sales agreed are 8% below last year, although activity has held up surprisingly well. With the Budget approaching, buyers have plenty to weigh up.
RICS – Chartered Surveyor Sentiment
Remember those tentative improvements in surveyor confidence over the summer? September’s RICS survey suggests rising interest rates have interrupted that progress.
New buyer enquiries slipped from -18% to -22%, their first deterioration since March. Agreed sales also edged down from -16% to -18%. Both readings remain well above their spring lows, but the recovery in sentiment has lost momentum.
Near-term sales expectations weakened slightly too, from -3% to -6%. There was one encouraging development: new instructions reached +6% (the first positive reading since mid-2025), suggesting a modest increase in properties coming to market.
Prices, however, remain under pressure. The national balance slipped from -28% to -32%, ending four consecutive months of gradual improvement. Surveyors also anticipate further price weakness over the next three months (-24%).
Looking a year ahead, expectations have settled at zero, suggesting broadly flat prices. It’s not a dramatic downturn, but hopes of recovery have certainly been tempered.
Zoopla – Housing Market Outlook
Could the forthcoming Budget unlock a more active housing market in 2027? Zoopla thinks the answer has less to do with direct support for buyers, and more with what happens to mortgage rates.
A Budget that reassures financial markets and helps control inflation could pave the way for lower borrowing costs next year. That would give buyers much-needed breathing room, although household confidence and the wider economy also matter.
There’s another development worth watching: the proposed Your First Home equity loan scheme. If its income and property price limits are pitched correctly, it could help more first-time buyers purchase new builds and stimulate demand.
For now, UK prices are up just 0.8% annually, averaging £273,100. Buyers have more choice and negotiating power, particularly in southern England, while homes that sell are finding a buyer in around 44 days. Realistic pricing remains essential as the market looks towards 2027.
Express Index
For a full, comprehensive breakdown of current property market activity. Visit our Express Index here
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