The UK House Price Index for September reveals a 0.6% fall in house prices from August, with an annual price increase of 2.6% – down from 3.1% in the 12 months to August 2025. Between August 2025 and September 2025, UK transactions decreased by 1.3% on a seasonally adjusted basis.
But with the news that inflation has dipped to 3.6%, some industry figures believe the slow-down is no cause for concern – and could even be viewed positively.
Iain McKenzie, CEO of The Guild of Property Professionals, said the figures confirm the housing market remains resilient. He explained:
“Buyer demand has held up well through the autumn, supported by rising mortgage approvals and a 13% uplift in transactions compared with last year. A 7% increase in homes coming to market is giving buyers more choice and helping to moderate price pressures, which is no bad thing for long-term stability.
“With inflation falling and the Bank Rate on hold at 4%, affordability should improve gradually, particularly if borrowing costs begin to edge down in the coming quarters. Despite budget uncertainty, these indicators point to underlying strength and a cautiously confident market.”
Nathan Emerson, CEO of Propertymark, said the annual increase is an encouraging sing that signals a return of buyer confidence and renewed momentum. However, he warned challenges remain. He added:
“To translate this momentum into long-term stability, it would be much welcomed to see the UK Government work closely with the industry to support sustainable growth, ensuring that more people can realistically access home ownership, rather than simply driving prices higher.”
Richard Donnell, executive director of research at Zoopla, said the slowdown is the result of ongoing affordability issues and the upcoming budget. He commented:
“Pre-budget jitters are hitting housing market activity at the start of the home buying process. Demand and sales agreed for homes priced over £500,000 are down by up to 9% on this time last year as buyers pause home buying decisions. There are 350,000 homes where the sale has been agreed moving towards completion and some buyers of expensive homes will be nervous about possible changes to council tax for their new purchases.
“All eyes are now on next week’s budget – if the housing market gets off lightly then we expect a rebound in demand and activity, but if the impact on consumer confidence is greater, then we could have a sluggish start to 2026.”
In September, the estimated number of transactions of residential properties with a value of £40,000 or greater was 96,000 – 3.7% higher than a year ago. The highest monthly house price increase was in Yorkshire and the Humber, where prices rose by 0.3%. The highest annual growth was also in Yorkshire and the Humber, where prices increased by 4.5% in the year to September 2025.
