7 October 2026
If you are covering Lloyds' House Price Index, please see the following comment from Ian Futcher, financial planner at Quilter:
"Lloyds' latest house price index shows UK property prices flatlined in September, leaving annual growth flat at 0.0% and the average home valued at £298,441.
"The market is facing gathering dark clouds on several fronts, with affordability, confidence and borrowing costs all coming under pressure, which is in turn causing house prices to stall. The forthcoming Budget is adding another layer of uncertainty, with some buyers choosing to sit on their hands until there is greater clarity on the government's tax and housing policy agenda. When purchasing a home is one of the biggest financial decisions a person will ever make, uncertainty alone can be enough to delay a move by weeks or even months."
"The ongoing conflict involving Iran continues to cast a long shadow over the economic outlook. Concerns that elevated energy prices and broader geopolitical uncertainty could keep inflation higher for longer have filtered through to financial markets, raising questions about the path of future interest rates and leaving households facing a more uncertain economic backdrop.
“These concerns are already feeding through to the mortgage market. Borrowers who only a few months ago were becoming more optimistic about the prospect of cheaper borrowing are now seeing that outlook shift significantly. Five-year fixed mortgage rates have moved back above 6%, placing further pressure on affordability and reducing borrowing power for prospective buyers. For most households, monthly mortgage repayments matter far more than small movements in property values.
"While these pressures do not guarantee falling house prices, they do act as a significant brake on demand and limit the potential for strong growth in the market.
"Fortunately, the desire to own a home remains strong, but many households are understandably taking a more cautious approach until there is greater clarity on the economic outlook and borrowing costs. As a result, the housing market is likely to remain subdued in the near term, with buyers weighing up an increasingly challenging set of financial considerations before committing to one of the biggest purchases of their lives."
