Weakest Annual Rise since April 2024
One of the big headlines this week came from Halifax, which reported that UK house prices rose by just 1.3% over the past year to September 2025, the slowest annual growth since April 2024.
Even more telling: prices fell 0.3% month-on-month in September, against expectations of a slight gain.
The slowdown is attributed to weak buyer demand, affordability strains, and expectations of tax changes in the upcoming budget.
What about earlier data?
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In August, Halifax had shown a 0.3% monthly increase and 2.2% year-on-year growth, and an average house price of £299,331.
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The Office for National Statistics (ONS) reports that average UK house prices increased by 2.8% (provisional) in the 12 months to July 2025, to around £270,000.
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Regional disparities are stark: London had very modest growth, while parts of the North saw stronger rises.
Outlook from analysts
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Knight Frank has downgraded its forecast: they now expect ~1% growth in 2025 (down from ~3.5%), with a better prospect for 2026.
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The underlying message: the market is not collapsing, but momentum is fading.
Frequently Asked Questions
The base rate only changes when economic conditions justify it — for example, to control inflation or stimulate growth. Some years see multiple changes, while in others it might stay the same for many months.