Average house price growth across the UK decelerated to 2.6 per cent in the 12 months to September, a slowdown from the 3.1 per cent recorded in August, the Office for National Statistics (ONS) has reported.
Average prices reached £293,000 in England, marking a 2.0 per cent annual increase, while Wales saw values climb to £209,000, up 2.7 per cent.
Scotland experienced a more robust 5.3 per cent rise, with average homes costing £194,000.
Northern Ireland recorded an average house price of £193,000 in the third quarter of 2025, reflecting a 7.1 per cent annual surge.
Within England, Yorkshire and the Humber registered the highest house price inflation for September, at 4.5 per cent.
Annual house price inflation in England was weakest in London. House prices in London fell by 1.8 per cent on average in the 12 months to September.
The average private rent in the UK was £1,360 per month in October, the ONS said – £65 (5.0 per cent) higher than 12 months earlier.
ONS head of housing market indices Aimee North said: ”UK annual house price inflation slowed in September with the average UK house price now around £272,000.
“The Yorkshire and the Humber was the English region with the highest house price inflation while the regions with the lowest annual inflation are in the south of England. London is the only region showing an annual fall again.
“The rental market continues to cool, with UK annual inflation easing for the 10th consecutive month.”
Average UK house prices increased by 2.6%, to £272,000 in the 12 months to September 2025, down from 3.1% in the 12 months to August.
— Office for National Statistics (ONS) (@ONS) November 19, 2025
Average UK private rents rose by 5.0%, to £1,360 in the 12 months to October 2025, down from 5.5% in the 12 months to September. pic.twitter.com/1g6qG2dN8D
The house and rental price figures were released as the ONS also said that Consumer Prices Index (CPI) inflation slowed to 3.6 per cent in October, from 3.8 per cent in September. Some commentators suggested this could pave the way for a Bank of England base rate cut soon, easing costs for some mortgage borrowers.
Sarah Coles, head of personal finance, Hargreaves Lansdown, said the below-CPI inflation increase in house price rises is “difficult news for homeowners, especially those who plan to downsize and cash in on as much property equity as possible”.
She added: “However, it’s a real positive for first-time buyers. If they have a competitive savings account, it will be outstripping house price inflation, making it easier for them to build a deposit.”
David Hollingworth, associate director at L&C Mortgages, said: “Today’s figures are unlikely to dampen hopes of a base rate cut in December, despite remaining well above the Bank of England’s inflation target.”
He added: “The growing belief of a cut coming sooner than previously anticipated has already seen mortgage rates improving. Mortgage lenders have been quick to pass on the improved cost of funds and there’s been successive rounds of fixed rate cuts by most major lenders.”
Iain McKenzie, chief executive of the Guild of Property Professionals said: “Affordability should improve gradually, particularly if borrowing costs begin to edge down in the coming quarters.”
