Average UK house price fell by £794 in September, says Halifax

The average UK house price fell by £794 or 0.3% month-on-month in September, according to an index.

The dip followed a rise of 0.2% in August, Halifax said.

The annual rate of house price growth also eased to 1.3%, from 2.0% in August, taking the typical property value to £298,184.

Amanda Bryden, head of mortgages at Halifax, said: “This slight monthly dip in house prices reflects a housing market that has remained broadly stable, prices are up 0.3% since the start of the year.”

She continued: “It’s also important to remember that prices vary widely depending on characteristics like location and property type. As a result, many homes are available at a cost well below this headline figure.

“For example, for those looking to take their first step on the property ladder, the typical first-time buyer home costs £236,811, up 1.7% year-on-year, with pockets of even greater affordability to be found across different regions.

“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.

“Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year.”

Earlier this week, the Government unveiled plans for a shake-up of the home-buying system, potentially slashing costs for buyers.

Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys.

Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, said that “for now” the biggest barrier to home ownership remains affordability “with many first-time buyers still struggling to get on the property ladder”.

She added: “That said, the current flatness in the market may offer some relief, particularly if sellers continue to price more realistically and mortgage rates remain stable.”

Halifax’s latest housing market report is in contrast to a report from Nationwide Building Society last week, which said house price growth had edged up. Nationwide recorded a 0.5% month-on-month increase in September, following a 0.1% monthly fall in August.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The market may not be going anywhere fast for a while.”

She added: “Meanwhile, the employment market has been weakening, and the uncertainty created by the looming Budget risks putting buyers off.

“Sluggish house prices are depressing news for older people, planning to downsize, and hoping the value of their home will rise as much as possible before they cash in.

“They also have an impact on homeowners more generally. At times when prices are more robust, people tend to feel more confident about spending, and investing in themselves, because on paper they’re richer. When house prices are held back, caution dominates, as we decide to sit on more cash and wait it out.

“Slower house prices are better news for first-time buyers, who have an opportunity to build their deposit and save towards a target that isn’t rapidly disappearing over the horizon.”

Karen Noye, a mortgage expert at wealth manager Quilter, said the housing market “continues to tread water as buyers and sellers adjust to affordability pressures and a cautious lending environment”.

She said: “Inflation has eased slightly but remains well above the Bank of England’s 2% target, keeping borrowing costs elevated. Although swap rates have drifted lower, lenders have nudged mortgage pricing up again in recent weeks as they rebuild margins and brace for potential surprises in the Budget. This has dampened activity, particularly among first-time buyers who remain highly sensitive to rate movements.”

Iain McKenzie, CEO of the Guild of Property Professionals, said: “This latest Halifax data underlines what we’ve been seeing on the ground, a housing market that’s stable, resilient, and adapting well to the current rate environment.

“A small monthly dip of just 0.3% doesn’t signal weakness – rather, it highlights a market finding its balance after a modest summer uptick.

“Mortgage rates have remained steady since the Bank of England paused rate hikes, and that consistency is helping buyers plan with greater confidence. Activity levels are holding firm, with approvals and transactions broadly in line with earlier in the year, clear evidence that demand is still there, even if buyers are a little more measured, particularly at the top end of the market.

“As we move toward the autumn Budget, a note of caution is creeping in, especially for higher-value homes, where both demand and new listings have eased slightly.

“But across most price brackets, the fundamentals remain sound: employment is strong, borrowing costs are stable, and sellers who price sensibly continue to attract serious buyers.”

Tom Bill, head of UK residential research at Knight Frank, said: “Sellers are getting the message that house prices are under pressure due to higher levels of supply and a creeping mood of caution as November’s Budget approaches.

“Stable mortgage rates have supported demand but we believe prices will continue to dip modestly before ending the year broadly flat.”

Jonathan Handford, managing director at estate agent Fine & Country, said: “For those looking to move now, the choice of stock combined with realistic pricing is creating an environment where good homes are moving quickly.

“While there may be some room for negotiation, do not expect your ideal home to stay on the market for a long time, as the demand to buy is still high.”

Amy Reynolds, head of sales at London-based estate agent Antony Roberts, said: “Competition is strong for the best homes, particularly in areas where stock levels are constrained.

“Buyers remain price-sensitive, with those motivated to move pressing ahead.”

Nathan Emerson, CEO of property professionals’ body Propertymark, said: “As we look ahead, the key to restoring momentum lies in improving market confidence, whether through interest rate stability, better mortgage accessibility, or policy measures that ease the transaction process.”

Here are average house prices followed by the annual increase or decrease, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):

East Midlands, £245,759, 1.5%

Eastern England, £335,506, 0.6%

London, £543,497, 0.6%

North East, £180,443, 4.8%

North West, £244,157, 3.9%

Northern Ireland, £216,496, 6.5%

Scotland, £215,588, 4.5%

South East, £388,632, 0.2%

South West, £303,067, minus 0.2%

Wales, £227,845, 1.9%

West Midlands, £258,769, 1.1%

Yorkshire and the Humber, £215,973, 2.5%