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UK House Price Growth Cools to 2.6% as Values Dip Month on Month

Pre‑Budget caution is tempering demand.

Overview

  • ONS data show the average UK home cost about £272,000 in September, with annual growth easing from 3.1% to 2.6% and a 0.6% fall from August.
  • London was the only region with an annual decline, down 1.8% to roughly £556,000, while Yorkshire and the Humber led England at 4.5% and Scotland and Northern Ireland posted stronger gains.
  • Private rents rose 5.0% year on year to £1,360 in October, with the ONS noting rental inflation has eased for the tenth consecutive month.
  • Timelier indicators point to softer conditions, with Rightmove reporting the highest share of asking‑price cuts since February 2024 and RICS members citing a third successive monthly drop in new buyer enquiries.
  • CPI eased to 3.6% in October, fuelling expectations of a possible Bank of England rate cut and prompting lenders to trim fixed mortgage rates, though agents report sentiment remains cautious ahead of the Budget.