After some difficult years for estate agents, homebuyers started to return to the market driving a steady recovery in housing sales. The average estate agent now has 36 homes for sale, 20% more than in 2023 and 8% higher than at this point last year.
The housing market usually has a busy summer and an active autumn, as people are determined to be in their new home before Christmas. But is this year looking different?
Sales were up
There was a flurry in the market at the beginning of the year as buyers rushed to complete and avoid the extra costs of stamp duty changes, followed by a lull.
The market then recovered a little as the impact of mortgage rate reductions started to filter through, and sales overall seem to be on the up.
This year, buyers are finding it easier to borrow. Changes in lender affordability rules mean homebuyers can now borrow around 20% more than they could six months ago, at the same mortgage rate and on the same income – although interest rates have not come down as quickly as expected and mortgage rates have begun to edge higher again.
But despite the mortgage advantages, the market seems to be slowing down. Reports that the chancellor is considering scrapping stamp duty and council tax and replacing them with an annual property tax is making buyers nervous.
The autumn selling season is not looking fruitful. It seems that homebuyers are waiting to see what the budget will hold.
What does this mean for prices?
Prices are stable
The average house price in the UK is £271,000 as of August 2025 (published September 2025). This is a rise of 1.4% or £3,870 over the past year, although the growth has faltered and house price growth has been slowing in recent months, showing very little change between August and September.
But as usual, figures need to be looked at more closely. Nationwide reported a 0.1% drop in house prices in August, while Halifax reported a 0.3% monthly rise.
Possibly because of the impact of the governments apparent war on Buy to Let, flats and maisonettes have fallen in price over the last few months, while stronger growth is seen in larger family homes, and particularly semi-detached properties, where affordability seems to drive prices up faster than detached homes.
This is complicated by regional variations.
There’s a clear North/south divide. Growth is weakest in southern England, where prices – already high – are rising by less than 0.5% across London, the South East, the South West and the East of England. Elsewhere actual annual growth ranges from 1.4% up to 7.9% in Northern Ireland.
Overall, there’s a clear link between local house prices and growth: the lower the average value of homes, the stronger the price increases.
Markets with average prices below £200,000 are seeing the fastest growth, up 2.8% on average. By contrast, in areas where homes average more than £500,000, prices are barely moving.
High priced homes are also proving less appealing to buyers.
Buyer demand for £1m+ homes has dropped 11% compared with the same time last year, while demand for properties over £500,000 is down 4%.
Markets with average prices below £200,000 are seeing the fastest growth. Areas where homes average more than £500,000, are seeing reduced demand and prices that are barely moving.
London and the South East have the largest share of homes priced over £500,000, so the impact of this price sensitivity is likely to be felt most strongly there.
Homebuyers and sellers appear to be delaying moves amid worries about an overhaul of stamp duty and replacing it with a national property tax on the sale of homes above £500,000.
There are also suggestions that capital gains tax could be applied to the sale of homes above £1.5 million.
What should you do?
With the Budget less than two months away, it’s worth remembering that moving home typically takes six to seven months from offer to completion. Waiting for certainty could mean missing out on opportunities while the market is depressed.
First-time buyers and those looking to make a large jump up the property ladder might feel heartened by increased affordability and borrowing costs expected to fall going forward.
The overall message might be if you are ready to make a move, to start making it now.
The best move to make immediately is to call us at Continuum. We’ll search the entire market to help find you the mortgage that’s appropriate for you
https://www.zoopla.co.uk/discover/property-news/house-price-index
Halifax UK | House Price Index | Media Centre
https://moneyweek.com/investments/house-prices/house-prices
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to a particular mortgage product and you should seek independent financial advice before embarking on any course of action.
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