Property Sales Stunted, but House Prices Soar
- House prices across England & Wales rise by 3% YOY to a record high of £290,064.
- Sale listings fell at the fastest rate in two years.
- The cost of renting has reached record levels.
- Londoners are choosing to remain living in London.
- The return of the Home Information Pack.
The momentum generated throughout this summer slowed down considerably this Autumn. Data from the Royal Institution of Chartered Surveyors (RICS) shows that listings of UK homes for sale fell at the fastest rate in two years this September. The fall in UK homes for sale is the third consecutive monthly fall. UK homes sold also decreased, with 16 per cent of those surveyed by RICS seeing a fall in transactions. This was fewer than 24% surveyed in August.
Surveyors told RICS that the drop in activity was primarily due to concerns over the upcoming November Budget, leading to caution among buyers and sellers, with affordability and sentiment acting as key constraints.
The property portal supports the RICS data, Rightmove, as they reported a 5% fall in buyer and seller activity in September. This has again been linked to the fears of property tax rises in the upcoming Budget.
Speculation that the budget may increase the cost of buying or owning a property at the higher end of the market, has given some movers, particularly in the south of England, a reason to wait and see what’s announced in the budget
Source: Colleen Babcock, Property Expert, Rightmove
House prices across England & Wales have hit a record high
The most recent Land Registry data is showing that the average price of a property in England and Wales is a record £290,064; 3% up YOY. Nationwide, who have its own house price index, is showing October rising YOY by 2.4%. Their data is adding to evidence that the housing market is stabilising after an increase in transaction taxes weighed on demand earlier this year, suggesting rising real wages and lower borrowing costs are helping aspiring homeowners.
Nationwide's figures come at a time when the Bank of England are also reporting that the number of mortgages approved in September was at the highest since 2024. I think the Autumn reports will now report the fall from such a strong summer period.
Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs.
Source: Robert Gardner, Chief Economist, Nationwide Building Society
Are first-time buyers giving up hope?
Skipton Building Society have reported that 98% of adults living with parents cannot afford to buy their own home. The data shows that it is far worse in the south of England, where only about 1 per cent can afford to buy.
In a month where Barclays Bank PLC have commissioned a report showing that only 30 per cent of Brits expect to be able to afford to buy their own home within their lifetime. The findings represent a shift from the owner-occupier nation we once were, with 76% of over-55s in England owning their own home, and 74% of those aged 65 and over owning their home outright.
The cost of renting has reached record levels
Private rents across the UK have reached record levels as tenants use 44% of their wage to cover rent, according to Rightmove’s Rental Trends Tracker. The figures show that private rent outside of London has risen to £1,385 per month, up 3.1% YOY. The average advertised rent for a property in London is £2,736, up 1.6% YOY.
With the most significant barrier to entry being the size of the deposit, I see us facing a generation of renters, which, without proper regulation, means ever-increasing rents. How can you save for a deposit while also paying high rent?
There is more work to be done… if we are to create a more dynamic housing market for everyone
Source: Jatin Patel, head of mortgages, savings and insurance at Barclays
Will mortgage rates go down again in 2025?
The short answer is: It is possible, but not guaranteed, and any fall will be slow. The Bank of England's decision to hold the base rate at 4.0% in September, following the August cut, signals a period of caution.
Inflation, at 3.8% in August, is still too high, forcing the Monetary Policy Committee (MPC) to prioritise price stability over supporting the economy with lower rates.
Fixed mortgage rates are guided by the swap market, which anticipated the August cut but is now less certain about further drops. As a result, average fixed rates have held steady or slightly increased in September. We are seeing rates settle into the mid-4% range (e.g., average 5-year fixed deals around 4.5% to 4.6%) . The consensus is for at most one more 0.25% cut before the year ends, potentially in November or December, to bring the Base Rate to 3.75%.
The Base Rate is lower than its 5.25% peak, which is easing affordability pressure. However, low-rate fixed deals from years ago are being replaced with higher rates.
This means securing a new deal early is key to avoiding the high Standard Variable Rate (SVR), which remains at about 7.4% across many lenders.
The upcoming MPC announcements on Bank Rates are on the 6th November and 18th December, and in 2026, 5th February, 18th June, 30th July, 17th September, and 5th November.
Record prices amid subdued sales volume
England & Wales
The headline takeaway for the market is its price strength. England & Wales has set a new record high, with the average house price reaching £290,064 (August 2025).
This 2.85% annual increase demonstrates the market's capacity to absorb volatility, pushing prices past previous benchmarks. The key driver is the sustained demand from the entry-level sector.
First-Time Buyers are the driving force behind this price benchmark, showing the highest annual growth across all cohorts.
- The average price for first-time buyers is now £243,333, a strong 2.91% annual rise.
- Owner-occupiers paid an average of £352,266 (up 2.77 year-on-year).
- Cash buyers averaged £276,266 (up 2.26% year-on-year).
While prices climb, underlying market activity is contracting. Completed sales volumes for June 2025 were 37,567 transactions.
This volume marks a 38.4% drop compared to the 61,027 sales recorded in June 2024. This year-on-year reduction in transactions confirms a subdued environment, likely influenced by economic caution and continued policy uncertainty around property tax reform.
London
London continues to face challenges. The average property price is now £565,567 (August 2025), representing a slight 0.27% decrease year-on-year.
This muted price movement is paired with a drop in transactions. Completed sales in London for June 2025 were 3,464, marking a steep 44.9% dip from June 2024's volume of 6,287.
This combination of slightly falling prices and a near-halving of transactions confirms London's high-value market is particularly vulnerable to economic and policy uncertainty.
Londoners are choosing to remain living in London
Hamptons Estate Agents are reporting that the number of Londoners moving out of the capital has fallen to its lowest in more than a decade now that people are having to go back into the office more often.
Mortgage approval reports
Home buyers
House Purchase Mortgage Approvals in September 2025 reached 65,944.
The latest figure shows a slight 1.51% increase from August, suggesting a steady close to the third quarter. Crucially, the annual movement remains stable, with only a marginal 0.48% rise compared to September 2024 data.
This stability confirms that while lower fixed-rate deals are supporting buyer affordability, they are not generating a new surge in demand. Instead, the market is sustaining the level of activity established earlier this year.
Remortgages
Remortgage Approvals reached 37,248 in September 2025.
While this figure is a minor 1.46% monthly decrease from August, it signifies a major 19.30% increase compared to September 2024 (from 31,217).
The slight monthly dip suggests the market is naturally cooling after the extreme activity earlier in the summer. However, the substantial annual increase confirms the strong, underlying demand in the remortgage sector.
With a large volume of homeowners still needing to secure new deals as their fixed rates expire, remortgaging activity is likely to remain high through the end of the year.
The return of the Home Information Pack
The government is expected to consult on plans to cut the time it takes to buy a home by four weeks, under new proposals to overhaul the house-buying process. The aim is to cut costs, reduce delays and halve failed sales.
Under the new proposals, sellers and estate agents will be legally required to provide key information about a property up front, potentially saving first-time buyers an average of £710 and cutting up to four weeks off the typical property transaction timeline. However, what does this mean?
The last Labour Government tried and failed to implement the Home Information Pack in 2007. They tried, as their implementation placed the buyer's cost on the seller and the packs became thinner in information, but failed because, in 2010, when the Conservative government took power, they were abolished immediately.
The packs would include:
- Energy Performance Certificate (EPC);
- title documents;
- local authority searches; and
- property information questionnaire.
The concept of more information at the earliest stage is a good concept; however, as most of the information is time sensitive, the seller faces duplication as they need to update the information during the conveyancing process. What is disruptive to the housing market is when a market-wide scheme is introduced, only to be abolished.
buying a home should be a dream, not a nightmare. Our reforms will fix the broken system so hardworking people can focus on the next chapter of their lives
Source: Steve Reed MP, Housing Secretary
How many new-build properties are being built?
The latest figures for new home construction show a mixed picture across England and Wales. House builders have increased their commitment, with total starts for new homes reaching 31,430 in Q2 2025.
This month we've heard it set out very clearly: UK to miss housebuilding targets, warn housebuilders. The Home Builders Federation (HFB) has warned in a letter to the Office for Budget Responsibility that Labour is unlikely to meet its pledge of 1.5 million new homes by 2030. They cited weak demand, high building costs, and strict regulations as major obstacles, putting Rachel Reeves’s growth plans at risk.
The HFB said the housing target is only achievable with stronger ministerial support, such as help for first-time buyers and lower taxes on new homes. Chris Curtis MP, chair of the Labour Growth Group, admitted reforms have been too slow and urged action on planning, regulation, and the New Towns programme.
Fewer plans approved for new homes
Fewer than 29,000 housing projects were granted permission by councils in the year ending June 2025, which has been described as “unacceptable” by new housing minister Steve Reed. Approximately 7,000 housing applications were granted permission between April and June 2025, marking the lowest three-month figure since records began in 1979 and representing an 8% decline from the same period in 2024. The data shows difficulties in reaching the government’s target to build 1.5 million new homes by the end of the parliamentary term.
There is some hope for London, though, as Steve Reed MP and London Mayor, Sadiq Khan, have announced developers will benefit from new planning rules that loosen design standards and cut the share of affordable homes required in a bid to boost the city’s building sector.
Labour is expected to fall short of its 1.5 million homes target, with projections estimating 840,000 homes will be delivered over five years
Source: Savills
Andrew Boast FMAAT
CEO of SAM Conveyancing
Autumn sales activity is slowing ahead of a budget that is full of uncertainty. What is contained within the budget could cause the market to stall.
The record-high house prices are also playing a factor as home buyers will struggle to save for their deposit whilst also paying record-high rents.
What is certain is that until we hear the budget on the 26th November, buyers and sellers will hold fire and the 2025 housing market will limp until the new year.
Sources: Latest data from - Gov.UK, Bank of England, UK House Price Index, ONS and Propertymark (NAEA).
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