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Property costs within the UK rose as soon as extra in September, following August’s slight fall – however new figures present flats stay out of favour with consumers.
Nationwide information exhibits costs are up 0.5 per cent month to month, retaining annual costs rising at 2.2 per cent.
However the statistics present there are main variations in worth adjustments between the north and south of the UK, in addition to within the property kind.
Semi-detached properties rose 3.4 per cent during the last 12 months, whereas indifferent (2.5 per cent) and terraced (2.4 per cent) noticed barely slower worth rises. The price of flats continues to say no, seeing common costs fall by 0.3 per cent.
Figures additional present the worth of a typical flat rising by round 20 per cent over the previous 10 years – lower than half of the worth development of terraced homes over the identical interval.
Regardless of the continuing year-on-year worth development, the third quarter of 2025 – July to September – noticed a slowdown in worth will increase, which consultants consider is linked to Price range uncertainty as individuals stay cautious with their cash and plans.
“Annual development remained regular at 2.2 per cent – a barely increased tempo of development in comparison with August, although nearly all of areas noticed a modest slowdown in annual home worth development within the three months to September,” defined Alice Haine, private finance analyst at BestInvest.
“The swirl of hypothesis has prompted some consumers, significantly on the prime finish of the market, to place buy plans on pause. This might dampen market exercise over the subsequent couple of months if consumers wait to see what they’re contending with earlier than they commit.
“Sellers are responding by pricing properties extra competitively, recognising that consumers aren’t solely dealing with increased buy prices but additionally the uncertainty that comes with potential tax adjustments.”
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Whereas property kind is an element, so too is location.
Properties in Northern Eire and the north of England proceed to see worth development far outstripping that within the south.
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“The slowdown is sharpest within the commuter belt round London,” stated Jonathan Hopper, CEO of Garrington Property Finders.
“The issue right here is that the variety of sellers far outstrips the variety of severe consumers. Even in extremely fascinating areas, sellers are having to cost their properties keenly simply to seize consumers’ consideration, and plenty of are providing reductions or sweetening the worth in different methods – maybe by making a contribution to the customer’s stamp responsibility prices – to get a deal finished.
“This difficulty is being compounded by the uncertainty surrounding subsequent month’s Price range. Rumours of a shake-up in property and wealth taxes have led many discretionary consumers to take a seat on their arms and this has utilized the brakes to costs in prime areas. Issues are brisker at cheaper price factors, particularly amongst first-time consumers who’re the most certainly to learn from August’s discount within the Financial institution of England’s base price.
“However whereas these components matter, the market is in the end pushed by the forces of provide and demand – and that is the place the hole between north and south is popping right into a gulf.
“Common costs in northern England rose virtually 5 instances sooner than they did within the south through the third quarter of the 12 months, and Scotland and Wales each posted development charges 4 instances increased than that of southern England.”
Nationwide, detailed home costs in northern England areas are rising 5.1 per cent 12 months on 12 months, versus 0.7 per cent in southern England.
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“The property trade additionally stays at the hours of darkness over potential adjustments within the tax regime on the Autumn Assertion. Whereas rumoured tax adjustments, corresponding to a possible property tax on homes price over £500,000, will considerably have an effect on the market, the uncertainty over what’s to come back might hold exercise subdued till extra readability is supplied within the Price range,” famous Tanya Elmaz, managing director at Collectively.
“Sellers seeking to full their sale earlier than Christmas should be coming into the market now with the best agent and an added sense of urgency,” added Man Gittins, CEO of Foxtons.
