The average UK house price dipped slightly in September, falling by £794 or 0.3% compared with the previous month, according to the latest Halifax House Price Index. This follows a modest 0.2% rise in August, suggesting the housing market remains relatively stable despite wider economic uncertainty.
Over the past year, annual house price growth slowed to 1.3%, down from 2% in August. The typical UK home now costs £298,184, based on Halifax’s data. While this marks a slight monthly decline, prices have still risen by 0.3% since the start of 2024, indicating a market holding steady rather than sliding.
Amanda Bryden, head of mortgages at Halifax, said the figures reflect a “broadly stable” housing market. She noted that prices can vary significantly depending on factors such as region and property type, with many homes available well below the national average price.
For first-time buyers, affordability remains tight but manageable. The average starter home now costs £236,811—an increase of 1.7% over the year. However, Bryden pointed out that there are still “pockets of affordability” across several UK regions, making homeownership possible for those willing to look further afield.
She added that lower mortgage rates and steady wage growth have helped maintain buyer confidence. Despite ongoing economic headwinds, Halifax expects modest price growth through the rest of the year, helped by stable borrowing costs and gradually improving affordability.
This comes as the government unveiled a major shake-up to the home-buying process earlier in the week. The proposed reforms aim to make transactions faster and cheaper, requiring sellers and estate agents to provide more information upfront, such as leasehold details and property conditions.
Binding contracts could also be introduced earlier in the process, helping prevent collapsed chains—a frequent frustration for buyers and sellers alike. Analysts say these reforms could potentially save first-time buyers hundreds of pounds and cut transaction times by several weeks.
Personal finance expert Alice Haine of Bestinvest said affordability remains the main obstacle for first-time buyers. She noted that while prices are stabilising, many prospective homeowners still struggle to raise sufficient deposits or meet lending criteria. However, she added that the current “flatness” in the market may give some buyers breathing space to negotiate better deals.
Interestingly, Halifax’s latest findings contrast with those from Nationwide, which recently reported a small increase in prices. Nationwide’s data showed a 0.5% rise in September, following a 0.1% decline in August—highlighting how market trends can differ between data sources.
Sarah Coles, head of personal finance at Hargreaves Lansdown, suggested the housing market could remain subdued for some time. She warned that a weaker job market and uncertainty ahead of the autumn Budget could dampen buyer activity in the coming months.
Coles also pointed out that stagnant prices could affect older homeowners planning to downsize, as well as those who feel less confident spending when their property’s value isn’t rising. However, she acknowledged that slower price growth benefits first-time buyers, giving them more time to save for deposits without chasing rising prices.
Karen Noye, mortgage expert at Quilter, described the market as “treading water.” She said affordability pressures and a cautious lending environment continue to hold back stronger growth. While inflation has eased slightly, it remains above the Bank of England’s 2% target, keeping borrowing costs relatively high.
Noye added that lenders have recently nudged mortgage rates upward to protect margins ahead of the Budget, cooling demand slightly—especially among rate-sensitive first-time buyers. However, she noted that mortgage approvals and activity remain broadly consistent with earlier in the year.
Industry figures echoed the sense of stability. Iain McKenzie, CEO of the Guild of Property Professionals, said the 0.3% dip “doesn’t signal weakness” but instead reflects a market “finding its balance.” He added that stable interest rates and steady demand have helped the market remain resilient, with realistic sellers still attracting serious buyers.
Across the regions, house price growth remains mixed. Halifax reported the following average prices and annual changes: East Midlands (£245,759, up 1.5%), Eastern England (£335,506, up 0.6%), London (£543,497, up 0.6%), North East (£180,443, up 4.8%), North West (£244,157, up 3.9%), and Northern Ireland (£216,496, up 6.5%). Scotland saw prices rise 4.5% to £215,588, while Wales averaged £227,845 (up 1.9%). The South East (£388,632) and South West (£303,067) were virtually flat, showing 0.2% and -0.2% changes respectively.
As the property market heads into the final quarter of the year, experts agree the focus remains on maintaining buyer confidence. With steady employment, moderate inflation, and potential reforms on the horizon, the UK housing market appears to be navigating a period of cautious but firm stability.
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