Rightmove’s September House Price Index reveals a mixed picture for the UK housing market - with demand dipping compared to last year’s September figures, but overall performance for 2025 remaining ahead of the first nine months of 2024.
New buyer demand and the number of new sellers entering the market both dropped by 5% year-on-year, while sales agreed fell by 2%. Yet, looking at the year to date, demand remains up 2%, and new seller listings are up 5%, highlighting continued resilience despite short-term caution. The average sale price in October rose 0.3% from September to £371,422 — a smaller increase than the typical 1.1% October rise seen over the past decade. The annual price trend remains negative (-0.1%), largely due to continued declines in London and southern England. Southern regions have been hit hardest by higher stamp duty, increased housing supply, reduced international buyer interest, and uncertainty ahead of the upcoming budget, according to Rightmove. Meanwhile, Scotland, Wales, and other parts of England have all recorded annual asking price increases of at least 1%.
Property expert Colleen Babcock noted: “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.”
She added that the current abundance of housing stock has shifted power toward buyers: “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.” Despite this, Rightmove remains optimistic, stating that “the 2025 market remains resilient, though somewhat cautious.”
Nathan Emerson, CEO of Propertymark, echoed this sentiment: “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 of waning confidence among 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 also reaffirmed its support for the government’s new policy proposals to streamline the buying and selling process, which Babcock described as “radical changes” and “encouraging.”
“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 short term, Matt Smith, Rightmove’s mortgage expert, expects a subdued market, though with potential improvements in affordability: “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.”
He added: “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.”
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Source: Today's Conveyancer
