Average UK house prices fell by 0.1% between September and October 2025, according to the latest UK House Price Index (HPI) from HM Land Registry. The average property value stood at £292,000, remaining 1.4% higher than a year earlier.
On an annual basis, prices rose by 1.7%, placing the average UK property price at £270,000.
Regionally, the North East recorded the strongest monthly growth, with prices rising 1.3%, and also posted the highest annual increase at 5%. London saw the largest monthly decline, with prices falling 1.9%, and recorded the weakest annual performance, down 2.4%.
Across England, the average price of a detached home was £470,000, up 1.1% year-on-year. Semi-detached properties rose 3.8% to £290,000, while terraced homes increased 2.4% to £244,000. In contrast, flats and maisonettes fell 3.6% to £219,000.
Cash buyers paid an average of £277,000, up 0.5% annually, while mortgage buyers paid £297,000, reflecting annual growth of 1.7%.
In Wales, prices fell 1.1% over the month but were 1.5% higher year-on-year, with the average property priced at £211,000. Detached homes averaged £329,000, up 0.6%, while semi-detached properties rose 3.3% to £211,000. Terraced homes increased 1.6% to £168,000, while flats and maisonettes declined 1.9% to £128,000. Cash buyers in Wales paid £210,000 on average, up 1%, compared with £211,000 for mortgage buyers, up 1.8%.
Repossession sales were highest in Yorkshire and the Humber, with 21 recorded in August 2025, and lowest in the East of England, with two.
New-build homes in England averaged £403,000 in August 2025, representing an annual increase of 13.4%. Existing resold properties averaged £290,000, up 1.7%. In London, new-build prices averaged £531,000, up 5.3%, while existing properties fell 1.3% to £563,000. In Wales, new-build homes averaged £345,000, up 13.9%, compared with £208,000 for existing properties, up 1.2%.
UK residential property transactions valued at £40,000 or more were estimated at 98,000 in October 2025, down 2.1% on the same month last year but 1.8% higher than in September 2025.
Industry reaction:
Nick Leeming, chairman of Jackson-Stops: “The numbers tell a simple story: the floor is holding, but the froth has gone. Reflecting the month before the Budget, today’s ONS figures confirm a market that has been subdued as many waited for fiscal clarity from the Chancellor, but importantly, house prices held their nerve. Market fundamentals keep the wheels turning with prices gently up on the year and remaining stable month-to-month, building a picture of quiet confidence even when under economic strain.
“As we edge into the new year, it is important for sellers to continue to price competitively. This is a precision market, with regional nuances and supply dynamics varying widely between postcodes, putting emphasis on sellers to read it correctly.”
Iain McKenzie, CEO of The Guild of Property Professionals: “The latest ONS figures show house prices continuing to edge higher, with the UK average up 1.7% year-on-year to £270,000, although the pace of growth has eased from September. That moderation reflects a market with far more homes for sale than this time last year, giving buyers the best choice they’ve had in years and keeping price rises in check.
“It’s also important to remember that the past couple of months were shaped by uncertainty ahead of the Autumn Budget. Many buyers and sellers paused while waiting to see whether speculation around property reforms would materialise, which brought an earlier-than-usual seasonal slowdown. Even so, the market proved resilient: mortgage approvals held broadly steady in October and sales volumes actually rose month-on-month, underlining that committed, needs-based movers are still transacting.
“Looking ahead, higher supply may put some downward pressure on prices in the very short term, but the fundamentals remain supportive. The OBR is forecasting a modest recovery, with average price growth of around 2.5% a year through to 2030. All eyes are now on tomorrow’s interest rate decision. With inflation easing to 3.2%, a rate cut would be a welcome confidence boost and could help unlock stronger activity as we move into the spring 2026 selling season.”
Richard Donnell, executive director of Zoopla: “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.
Nathan Emerson, CEO of Propertymark: “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.”
Stacy Eden, head of real estate at RSM UK: ““During October and the run-up to the Budget, the uncertainty from government around taxes on housing values possibly replacing Stamp Duty, and on landlords’ rental income, some of which came to fruition in the form of an increase of 2% tax on rental income and higher taxes on properties worth more than £2m, has all resulted in a stagnated market.
“The question is will buyers feel positive about the market and future economic growth and stability in 2026 and beyond. There are positive signs ahead with declining interest rates and possibly less uncertainty domestically and globally. Inflation falling to 3.2%, means we are confident of interest rates declining to 3-3.5% in 2026.
“Additionally sustainable rental growth in some regions of over 5% is a positive sign that landlords will continue to receive rental returns from their properties. Rental growth was 4.4% in the UK for the year to November and 8.4% in the highest region, the North-East.”
Ian Futcher, financial planner at Quilter: “The latest government house price index shows the housing market largely stalled in October. UK house prices fell by 0.1% on a monthly basis, bringing the average price to £270,000. On a annual basis, prices rose by 1.7%.
“It’s important to note that the Government’s index is a lagging indicator. Other indices have already reported even greater stagnation in November, as many buyers and sellers paused plans ahead of the budget, waiting for clarity on future policy, which contributed to minimal movement in the market.
He added: “The housing market has shown resilience throughout 2025 despite the ongoing challenges, but recent months have seen a clear slowdown. Looking ahead, greater certainty following the budget and falling interest rates should support more positive growth in 2026. However, many households will still be facing significantly higher monthly mortgage payments, meaning any recovery is likely to be modest for some time.”