The average asking price for homes across the United Kingdom has seen a modest increase this October, rising by 0.3%, or roughly £1,165, according to property website Rightmove. This brings the national average asking price to £371,422. However, while this marks a small improvement in price movement, it remains well below the ten-year October average of a 1.1% rise. The slower pace suggests that sellers continue to face limited pricing power in a market where buyers are cautious and selective.
Over the last twelve months, the national average asking price has dipped slightly by 0.1%. This minor decline conceals significant regional differences across the country. In the south of England — particularly in London — property prices continue to underperform compared to the national trend. High stamp duty, weaker demand from overseas investors, and a general “wait and see” approach from potential buyers have contributed to this sluggishness, according to Rightmove’s latest findings.
London’s housing market has been especially affected, with average prices in the capital falling by 1.4% year-on-year. All four southern regions of England have recorded similar declines, reflecting ongoing affordability pressures and rising competition among sellers. In contrast, the Midlands, Scotland, and Wales have seen property values rise by at least 1%, indicating a healthier level of demand and stability in those regions.
The report points out that stamp duty changes introduced in April have had a particularly strong impact on the more expensive property markets in the south. These higher tax costs, combined with greater housing supply, have made it harder for sellers in premium areas to maintain price growth. In these markets, buyers are spoilt for choice, giving them greater negotiating power and leaving sellers little room to raise asking prices.
Matt Smith, a mortgage expert at Rightmove, commented on recent mortgage trends, noting that lending rates have mostly stabilised over the past month. Some lenders have slightly increased their rates, while others have made small reductions, effectively putting the market in a holding pattern. He explained that this pause is largely due to lenders waiting for policy clarity from the government’s upcoming autumn budget later this November.
Smith added that the overall cost of borrowing has started to ease again, which could lead to minor but gradual reductions in mortgage rates soon. However, he cautioned that the housing market is likely to remain quiet until after the budget is announced, as lenders and borrowers alike hold off on major decisions until they have a clearer idea of how new policies might affect them.
Affordability, though, has seen some improvement when compared to last year. Stable house prices, slightly relaxed lending conditions, and lower average mortgage rates — particularly for popular two-year fixed-rate products — have made it somewhat easier for first-time buyers and movers to secure loans. This improvement, however, has not yet translated into a significant increase in transaction volumes.
Rightmove’s analysis also revealed that September 2025 was softer compared to the same period in 2024. Both new buyer enquiries and fresh listings fell by 5% year-on-year, while agreed sales slipped by 2%. Despite these short-term figures, the broader picture for 2025 remains more optimistic. Year-to-date data shows that buyer demand is up 2%, while new listings and agreed sales are both up 5% compared to last year, signalling that market activity has not ground to a halt.
Rightmove highlighted the importance of pricing strategy in the current climate. Homes that receive an enquiry within the first day of being listed are 22% more likely to sell than those that attract little or no attention in their first two weeks. This data reinforces how crucial it is for sellers to set realistic asking prices if they hope to capture early interest from buyers.
Colleen Babcock, property expert at Rightmove, commented that while the housing market has shown resilience throughout 2025, there is not enough momentum to trigger the usual autumn bounce in prices. She explained that the current market is characterised by a high level of supply and a cautious approach from buyers, which together have tempered price growth and forced sellers to be more flexible with their expectations.
Another factor influencing market behaviour is speculation about potential tax changes in the upcoming budget. Rumours that the government may adjust property-related taxes or raise costs for higher-end properties have led many buyers and sellers — particularly in southern England — to postpone their decisions until after the budget announcement.
In London, buyer hesitation is especially noticeable, with international investors showing less urgency than before. Marc von Grundherr, director at London-based agency Benham and Reeves, noted that while interest from overseas buyers remains steady, fewer are moving forward with purchases. He attributes this to persistent inflation, economic uncertainty, and the slower-than-expected pace of interest rate cuts.
Von Grundherr also said that many potential buyers are adopting a cautious “wait and see” approach, hoping for more affordable mortgage options or clearer fiscal policies in the months ahead. He expects that once the government releases its budget and the direction of the economy becomes clearer, market confidence will likely improve, leading to a stronger end to the year.
There have also been signs that housing will feature prominently in the upcoming budget. Both the government and the Conservative Party have suggested that reforms could be on the way to make buying and selling homes faster and more efficient. Such measures could give the market a boost by improving buyer and seller confidence.
Babcock expressed optimism about these potential reforms, saying that any steps to speed up the home-buying process and simplify transactions would be beneficial for the entire property market. She also renewed calls for a review of the stamp duty system, which many believe continues to act as a major barrier to movement, particularly in higher-value areas.
Rightmove has long campaigned for the government to consider scrapping or reforming stamp duty. The company argues that increasing the thresholds or removing the tax altogether would significantly boost housing mobility and help address one of the biggest obstacles facing both buyers and sellers.
With Chancellor Rachel Reeves set to deliver the government’s autumn statement on 26 November, all eyes will be on what the budget holds for the housing sector. Analysts and homeowners alike are hopeful that the measures announced could bring renewed energy and stability to the UK property market as the year draws to a close.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property