7 October 2025
If you are covering the latest Halifax house price index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“The latest Halifax index shows that UK house prices fell 0.3% in September following a modest rise in August, with values now 1.3% higher than a year ago. The market continues to tread water as buyers and sellers adjust to affordability pressures and a cautious lending environment. The average house price now stands at £298,184.
“Inflation has eased slightly but remains well above the Bank of England’s 2% target, keeping borrowing costs elevated. Although swap rates have drifted lower, lenders have nudged mortgage pricing up again in recent weeks as they rebuild margins and brace for potential surprises in the budget. This has dampened activity, particularly among first-time buyers who remain highly sensitive to rate movements.
“The government’s plans, announced yesterday, to reform the house-buying process could help reduce costs and delays over time. The proposals to require sellers to provide key information up front and explore binding contracts are designed to make transactions quicker and more transparent. But while these changes may improve confidence, they will not solve the deeper affordability challenge that continues to weigh on the market.
“The latest ONS data also suggest households may have far less of a financial buffer than previously thought. The revised figures halved the estimated household savings ratio for late 2022, implying many families saved significantly less during the post-pandemic recovery than earlier believed. With smaller savings cushions, more households may find it difficult to absorb higher mortgage costs or build deposits.
“In the run-up to the budget, speculation about possible changes to property taxation has added another layer of uncertainty. Reports suggest the Chancellor may be exploring reforms to stamp duty or the taxation of property gains, measures that could influence both short-term activity and longer-term pricing if implemented.
“With borrowing costs still high, weaker household finances and potential tax changes on the horizon, house prices are likely to remain broadly stable in the near term, with regional trends reflecting local supply and demand rather than a clear national direction.”
