House prices have edged up 0.4% in September, with the average new seller asking price rising by £1,517 to £370,257, according to Rightmove’s latest house price index (HPI).
Despite this, average asking prices were still 0.1% lower than the same period last year, mainly due to weaker performance in London and the South.
Sellers in the South faced tougher conditions, with a 9% rise in the number of homes for sale compared to last year and homes taking five days longer to find a buyer.
Across Great Britain, homes for sale rose by 2%.
However, the number of sales agreed was 4% higher than last year, up 3% in the South and 5% elsewhere.
In London, 59% of sales so far this year were for properties over £500,000, compared to 22% outside the capital.
Rightmove’s Mortgage Tracker showed the average 2-year fixed mortgage rate fell from 5.03% in August 2024 to 4.52% in September 2025.
The average asking price for first-time buyers (FTBs) rose to £227,133, up 0.4% from August but down 0.2% year-on-year.
Second-steppers saw a 0.3% monthly rise to £345,058, up 0.6% over the year.
Top-of-the-ladder properties dropped 0.5% in the month to £669,139, down 0.2% on last year.
Colleen Babcock, property expert at Rightmove, said: “We’d expect to see a slight uptick in new seller asking prices in September, with the traditional back to school season boosting activity heading into autumn.
“This year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year.
“However, prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the south of England which is driving this small dip.”
Babcock added: “It’s the sensible and attractive seller pricing we’ve been reporting which has been helping to drive more sales activity compared to last year.
“Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.
“Rumours of property tax changes began swirling in mid August, and with the Budget itself not arriving until the end of November, this kind of extended uncertainty can affect market activity, especially in the higher price brackets.”
She said: “Movers want to be confident in planning their moving costs.
“Our real-time data has not yet picked up any major shifts, however it’s understandable that those who could be negatively affected by the rumoured changes might be in the process of reassessing their short- and medium-term plans.
“Our analysis highlights how London and south England centric the changes would be, and these are the areas that are already performing less strongly.”
Matt Smith, mortgage expert at Rightmove, said: “Mortgage rates have edged upwards over the last few weeks as global events have made mortgage financing a little more expensive.
“Inflation is also proving sticky, and as we saw in the commentary from the Bank of England at the last rate decision, there is some uncertainty from the Bank about the future road of rate cuts.
“Like in the housing market, we often see a bounce in lender activity in September after the summer holidays so we can expect lenders to remain as competitive as possible to secure business.”
Smith added: “The rhetoric around mortgages continues to be about how lenders can unlock greater affordability by allowing people to responsibly borrow more, which is encouraging for the market, particularly first-time buyers.”
REACTION:
Matt Giggs, founder of the Giggs Group:
“Sellers who reduced their price expectations over the summer are now creating more realistic conditions for sales, which is keeping things moving.
“We’re finding that well-presented, competitively priced homes are still attracting strong interest, and the high choice of homes for sale is also encouraging buyers.
“In Cambridgeshire, we’re seeing a steady market and aren’t feeling some of the drag that may be more apparent in London or further south.
“However, uncertainty around the Budget doesn’t help movers’ confidence, particularly those looking at higher-value homes.
“These buyers might be more hesitant to act until there’s clarity.”
Matt Thompson, head of sales at Chestertons:
“Over the past months, the dynamics of London’s property market have changed, with some boroughs not experiencing the activity or price growth traditionally associated with a world capital such as London.
“While this has required buyers and sellers to adjust their approach, it has also created opportunities and enabled some house hunters to find properties that were previously outside their budget.
“After the summer holidays, we’ve already registered an uplift in enquiries from house hunters who are keen to proceed with their property purchase now as they believe the current market climate to be a temporary window of opportunity.
“Other buyers feel that they will have more clarity after the Autumn Budget which could then boost buyer confidence and fuel a sellers’ market sentiment towards the end of the year.”
Mary-Lou Press, president of NAEA Propertymark:
“Recent Stamp Duty threshold changes and concern regarding the forthcoming budget have added fuel to the fire when it comes to the confidence of potential home movers.
“As mortgage products start to improve and provide light at the end of the tunnel for many, people might now be faced with additional tax to pay when purchasing, potentially adding further pressure on finances.
“House price growth is a sign of wider economic health; therefore, without clear support for people to step onto or move up and down the housing ladder, there’s a concern that this might stagnate the wider property market and prove a setback regarding restoring financial stability.”
