House Prices Dip Ahead of Crucial Budget
New analysis of official data reveals that average house prices across Britain have fallen as buyer demand slows significantly in the run-up to next week's Budget announcement. The latest figures from the Office for National Statistics show the typical UK house price stood at £271,531 in September, representing a 0.6% decrease compared to August.
Regional Variations Show Clear North-South Divide
Analysis conducted by online estate agents Purplebricks examined monthly differences across English regions, revealing that property values have declined in nearly all areas. The North East experienced the most substantial price drop at 1.2%, bringing average home values down to £161,770. London followed closely with a 1.1% monthly decline, while the South East saw prices dip by 1.2%.
The capital's property market saw £6,381 wiped off average values, reducing the typical London home to £556,454. Similarly, properties in the South East lost £4,658 in value, bringing the regional average to £383,812.
Glimmers of Hope in Challenging Market
Despite the overall downward trend, some regions demonstrated resilience. Yorkshire and the Humber recorded a modest 0.3% monthly increase, adding £524 to average property values and pushing them to £207,877. Scotland also showed positive movement with a 0.4% rise, though this only translated to £711 in increased value, bringing the average Scottish home to £194,273.
The annual perspective provides some comfort to homeowners, with UK property prices having increased by approximately £7,000 over the twelve months to September. The current average UK home is valued at around £272,000.
Budget Uncertainty Creates Market Caution
Tom Evans, sales director at Purplebricks Estate Agency, commented: 'While this isn't the result homeowners would have hoped for, a dip in house prices at this time of year is not unexpected. Many buyers and sellers are understandably pausing activity while they wait to see what Rachel Reeves sets out in the Autumn Budget, particularly around housing supply and potential new property taxes.'
Robert Nichols, managing director of Purplebricks Mortgages, added: 'Forecasts remain steady for both existing homeowners and first-time buyers, but the run-up to the Budget is clearly giving reason for caution. If the Treasury proceeds with proposals to tax properties over £500,000 and revises capital gains exemptions for homes above £1.5million, it could discourage some owners from listing their properties this winter.'
The ONS House Price Index confirmed that new buyer enquiries remained in 'negative territory' for the third consecutive report, with most UK regions experiencing falling demand. Meanwhile, rental markets continue to show strength, with average private rents reaching £1,360 per month in October - £65 higher than twelve months earlier.
