Property industry reacts to new Rightmove House Price Index

Tom Bill, head of UK residential research at Knight Frank — Tom Bill

The average asking price for homes in the UK edged up this month, though it remains below the ten-year October average increase of 1.1%, as high stock levels continue to curb seller pricing power, The latest data from Rightmove reveals.

Market activity softened in September year-on-year, following a strong September 2024 that was boosted by the first Bank Rate cut in four years and early moves ahead of the April 2025 stamp duty rise. Despite this, the market has shown resilience through 2025, with year-to-date buyer demand up 2% and new seller listings up 5% compared to the same period last year.

On an annual basis, asking prices remain down slightly at -0.1%, driven by declines in London and the South of England. However, Scotland, Wales, and other English regions have all posted annual price growth of at least 1%.

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Industry reaction:

Tom Bill, head of UK residential research at Knight Frank: “Transaction numbers over the last six months have been supported by stable mortgage rates and softer prices as sellers come to terms with the fact that high levels of supply mean it is a buyer’s market. However, demand is wavering for the second successive year as the autumn market gets underway year as speculation over the Budget becomes a prolonged and frustrating game of ‘guess the tax rise’.”

James Nightingall, founder of HomeFinder AI: “The majority of house hunters are stalling their search amid the Autumn Budget. This is resulting in fewer transactions and some sellers reducing their asking price to attract offers. First-time buyers, on the other hand, have perhaps been the one demographic that has shown a similar level of motivation seen during October last year with many aiming to move into their new property by the end of the year.”

Jeremy Leaf, north London estate agent: “Although a good indicator of market trends, Rightmove’s asking prices are just the owner’s starting point to gauge whether genuine buyers will be attracted.

“These figures are not immune to recent turbulence in the market as buyers and sellers worry as to what the Budget might bring in the way of higher taxes. Sellers are still being ambitious on price, confirming what we are seeing on the ground, leaving it up to buyers and agents to convince them that reality does not quite meet their aspirations.

“Demand is still there but properties are taking longer to attract offers as buyers pause, which is having a knock-on effect on the number of our new listings too.

“Looking forward, we don’t see much change until after the end of November but if the Budget measures are not as damaging as some expect, we could look forward to a reasonable bounce back for the market in early 2026.”

Nathan Emerson, CEO at Propertymark:

“Although there has been a softening of activity year-on-year, it is encouraging to see that the UK’s housing market continues to adapt to economic pressures. While year-to-date figures show positive signs, including a rise in buyer demand and sales agreed, the month-on-month slowdown reflects a market shaped by caution, price sensitivity, and political uncertainty ahead of the Autumn Budget.

“Affordability challenges, high property choice, and the impact of recent Stamp Duty changes are clearly weighing on the confidence of buyers and sellers alike, particularly in the South of England. Our member agents are reporting similar trends on the ground, with committed buyers and sellers having to act decisively and price competitively to achieve results.

“Propertymark supports reforms that will streamline the home buying and selling process and improve market mobility. However, more needs to be done to ease transactional costs and boost supply, particularly in regions hardest hit by current property tax policy. We hope the UK Government uses the upcoming Budget to deliver meaningful support for the sector, including a full review of Stamp Duty, to help unlock movement across all parts of the market.”

Marc von Grundherr, director of Benham and Reeves: “Whilst there is certainly plenty of initial interest in London, we’re not seeing as many buyers committing, particularly when it comes to international enquiries.

“Mortgage rates have been largely trending downwards since the base rate began to stabilise and fall, but stubbornly high inflation continues to delay the pace of cuts that many had hoped for by now. This has left some buyers in a holding pattern, waiting for clearer signs of sustained affordability before committing.

“A great deal of the current hesitation can also be attributed to the upcoming Autumn Budget, with many buyers preferring to wait for clarity on taxation and wider economic policy before acting. Once this uncertainty has passed, we expect the market to gather pace.

“London may be trailing the rest of the country for now, but history shows it tends to outperform once momentum builds, and we anticipate that pattern will return as confidence strengthens.”