Housing market loses momentum as prices stall in September – Lloyds
Average house prices in the UK saw no month-on-month change in September as prices moved marginally from £298,395 to £298,441.
The Lloyds house price index showed prices were also unchanged annually, following a 0.3% decline in August.
There were notable differences across the nations, as Northern Ireland recorded 7.4% year-on-year price growth, up from 6.8% the year before. In Northern Ireland, average house prices reached a record high of £231,287.
In Scotland, house prices rose 3.4% over the year to an average of £223,330, while Wales saw values grow 1.2% to £231,287.
The North East had the strongest house price growth across England, rising by 2.4% to £184,546. This was followed by the North West, where prices rose 1.9% to £248,932.
The West Midlands was the only other English region to record positive annual growth, at 0.8% to £260,892.
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Lloyds’ report showed that house prices either stayed flat or declined in England’s Southern regions.
Prices in the South East fell by 2.1% to £380,829, while values in the South West dropped 1.4% to £299,572. Greater London saw the largest decrease in average house prices, falling 2.2% to £531,548.
Balancing buyer caution with demand
Andrew Asaam, mortgages director at Lloyds, said that while the overall market had been subdued, property prices had been resilient during the higher-rate period.
He added: “Whether that picture continues is likely to depend on how confident consumers feel that the latest cost‑of‑living pressures will prove temporary. Confidence has long been a key driver of housing market activity, and will play an important role in shaping demand over the remainder of this year and into 2027.
“For now, the housing market appears to be balancing buyer caution with continued underlying demand. While higher mortgage rates and wider economic uncertainty are encouraging some people to take a more measured approach, new enquiries from prospective buyers are now at their highest since February. That should help sustain activity in the near term, with any movement in house prices likely to remain modest.”
Amy Reynolds, head of sales at Antony Roberts, said the market had “lost [a] bit of momentum”, as price growth slowed and mortgage approvals fell, adding: “Buyers are still out there, but they’re being careful.”
Reynolds said borrowing costs were the “main brake”, but buyers were also nervous about potential tax changes in the upcoming Budget.
“For the remainder of the year, we expect prices to be broadly flat, with activity picking up modestly if the Budget passes without too many nasty surprises,” she added.
Mark Harris, chief executive of SPF Private Clients, said economic uncertainty caused by the conflict in the Middle East had resulting in a slowing of house price growth, as well as uncertainty around the Budget and possibility of higher mortgage rates.
He said: “Borrowers coming off fixed rates of around 1% will be hit with a significant payment shock when they remortgage.”
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said prices were “holding firm as buyers try to ensure further increases in mortgage costs and inflation are balanced with the unpredictability of fallout from the Iran conflict and seller expectations”.
