The average asking price for homes in the UK edged up this month, though it remains below the ten-year October average increase of 1.1%, as high stock levels continue to curb seller pricing power, The latest data from Rightmove  reveals.

Market activity softened in September year-on-year, following a strong September 2024 that was boosted by the first Bank Rate cut in four years and early moves ahead of the April 2025 stamp duty rise. Despite this, the market has shown resilience through 2025, with year-to-date buyer demand up 2% and new seller listings up 5% compared to the same period last year.

On an annual basis, asking prices remain down slightly at -0.1%, driven by declines in London and the South of England. However, Scotland, Wales, and other English regions have all posted annual price growth of at least 1%.

Housing market ‘very price-sensitive market’ as supply reaches decade high – Property Industry Eye

Industry reaction:

Tom Bill, head of UK residential research at Knight Frank: “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 year as speculation over the Budget becomes a prolonged and frustrating game of ‘guess the tax rise’.”

James Nightingall, founder of HomeFinder AI: “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.”

Jeremy Leaf, north London estate agent: “Although a good indicator of market trends, Rightmove’s asking prices are just the owner’s starting point to gauge whether genuine buyers will be attracted.

Nathan Emerson, CEO at Propertymark:

“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 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.”

Marc von Grundherr, director of Benham and Reeves: “Whilst there is certainly plenty of initial interest in London, we’re not seeing as many buyers committing, particularly when it comes to international enquiries.

“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.”

Hamza Behzad, business development director, Finova: “Todays house prices are sending a clear signal that the UK housing market is still under pressure. While buyer confidence is starting to return, it’s doing so cautiously, and the drop in prices highlights the challenges households face in an uncertain economic environment. On the flip side, competitive mortgage rates are helping, giving much-needed support to both first-time buyers and those looking to remortgage.

“Buyers are still acting cautiously, understandably waiting to see what Rachel Reeves’ Budget will bring next month. In the meantime, policy changes are already reshaping the market. The upcoming Renters’ Rights Bill is prompting some landlords to sell ahead of new regulations, giving buyers more choice. Stamp duty adjustments have also influenced affordability. Sales volumes have bounced back since the end of temporary stamp duty relief, but any tax rises in the budget could dent disposable incomes and put further pressure on the housing market next year.”

Housing market ‘very price-sensitive market’ as supply reaches decade high