Rightmove’s September House Price Index paints a mixed picture of the housing market, with a drop in demand compared to the same month a year ago, but an overall increase for 2025 compared to the first nine months of last year.
New buyer demand and the number of new sellers coming to market are both down by 5% compared to September 2024, with the number of sales agreed down by 2%. But when taking into account the year to date, demand is up by 2% and the number of new sellers coming to market is up 5%.
The average sale price in October has increased by 0.3% since September, to £371,422 – lower than the usual October increase, which averages at 1.1% over the last 10 years. The annual price dip continues, with falls in London and the south of England dragging the overall national average down to -0.1%.
Southern England is being particularly affected by a combination of increased stamp duty, high buyer choice, reduced appeal to some international buyers, and some ongoing jitters about the forthcoming budget, according to Rightmove. Scotland, Wales and the rest of England have all seen annual asking price rises of at least 1%.
‘Despite the overall resilience of the 2025 housing market, we’ve not got enough pent-up momentum or recent positive sentiment to spur the usual autumn bounce in property prices’, property expert Colleen Babcock said.
“We’re experiencing a decade-high level of property choice for buyers, which means that sellers who are serious about selling have had to acknowledge their limited pricing power and moderate their price expectations. In addition, speculation that the budget may increase the cost of buying or owning a property at the higher end of the market, has given some movers, particularly in the south of England, a reason to wait and see what’s announced in the budget.”
The dip hasn’t been enough to dent Rightmove’s confidence in the market, however, with the report noting ‘the 2025 market remains resilient, though somewhat cautious’.
Propertymark’s CEO Nathan Emerson agreed, and said the figures are encouraging:
“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.”
However, he warned Propertymark members are seeing a lack of confidence from both buyers and sellers:
“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.”
Rightmove said it strongly supports the new policy proposals to improve the buying and selling process announced by the government earlier this month, with Babcock calling the ‘radical changes’ encouraging. She added:
“We’re all for policies which would speed up the home buying and selling process and make it easier for all involved, and we’re looking forward to helping the government with our 25 years of housing market data. Rightmove has been calling for stamp duty reform for some time now, and we believe that abolishing it completely would remove one of the biggest barriers to movement.”
In the meantime, Rightmove’s mortgage expert Matt Smith believes the market will remain subdued – although affordability may improve.
He explained:
“Mortgage rates have plateaued over the last month, with some average rates rising and others falling, as lenders hit the pause button leading up to the budget. The cost of financing mortgages has come down again, so we’re likely to start seeing some very gradual drops in average rates soon.
“However, until the budget at the end of November, we’re likely to see a very quiet market with few shifts in rates, as lenders wait to see how they may be affected by any policy announcements. Average mortgage rates, particularly two-year fixed rates, are still lower than they were a year ago. Combined with flat house prices and improved lending criteria, many home-movers may find their affordability significantly improved compared with last year.”
