New data released for September 2025 reveals a significant slowdown in UK house price growth, causing concern among homeowners about the stability of the property market.
Regional Price Variations Across the UK
The latest figures show that the average UK house price reached £272,000 in September. However, the annual growth rate decelerated sharply to 2.6 per cent, down from 3.1 per cent recorded just the previous month in August.
A detailed regional breakdown highlights a divided market. In England, the average property price was £293,000, reflecting a modest annual increase of 2.0 per cent. Wales saw prices at £209,000 with a 2.7 per cent rise, while Scotland experienced a stronger 5.3 per cent increase, bringing its average to £194,000.
Northern Ireland recorded the most dramatic surge, with prices jumping 7.1 per cent year-on-year to an average of £193,000 in the third quarter.
London's Decline and Yorkshire's Rise
Within England, the performance was highly varied. London bucked the national trend by registering an annual fall of 1.8 per cent in house prices. In stark contrast, Yorkshire and the Humber registered the highest regional inflation in England at a robust 4.5 per cent.
Rental Market and Economic Context
As the sales market cools, the rental sector shows no signs of slowing down. The average UK private rent increased by 5.0 per cent in the year to October 2025, reaching £1,360 per month.
This property data arrives alongside key economic indicators. The Consumer Prices Index (CPI) inflation slowed to 3.6 per cent. This cooling of inflation has led to speculation that the Bank of England may consider a cut to its base rate in the near future, a move that could have significant implications for mortgage holders and the broader housing market.
The stalling house price growth presents a challenging environment for sellers and may signal a shift towards a more balanced market after years of rapid price increases.
