UK House Prices Slip as Budget Uncertainty Weighs on Market
After more than a year of steady rises, the housing market is starting to show cracks. New figures reveal that average asking prices in September have dipped compared with the same period last year, the first annual fall since early 2024.
Southern Markets Lead the Decline
The softening has been most noticeable in London and the South East, where a surge in available stock is forcing sellers to cut asking prices to stay competitive. Average values in these regions are now slipping back, pulling down the national picture.
Across the country, the average asking price has edged lower, with homes in the £500,000–£750,000 bracket seeing some of the sharpest adjustments. By contrast, markets in the North and Midlands remain more stable, though price growth there has also slowed.
Why the Market is Cooling
Several factors are converging:
- Budget speculation: Rumours of major property tax changes have left many buyers and sellers holding off until the Chancellor reveals her plans.
- Affordability pressures: Mortgage rates remain elevated, stretching household budgets and limiting borrowing power.
- Rising supply: More homes are hitting the market, giving buyers greater choice and weakening sellers’ pricing power.
The result is a market that feels hesitant, with buyers cautious about overpaying and sellers facing tough decisions about reducing prices.
Not All Gloom
Despite the national dip, some areas are holding firm. Regions with lower average values, such as the North East and parts of Scotland, are proving more resilient. Here, demand from first-time buyers and movers remains steady, keeping prices broadly level.
Outlook
Industry voices suggest that uncertainty is now doing more damage than the fundamentals. If tax reform details emerge clearly in the Autumn Budget, confidence could return and transactions may pick up.
For now, however, the message is clear: the era of uninterrupted price growth has paused. Buyers have a little more bargaining power, sellers face sharper competition, and the market is bracing for political decisions that could set the tone for the months ahead.
