The UK housing market has shown resilience this autumn but not enough strength to deliver the usual seasonal bounce according to the latest data from Rightmove.
Average new seller asking prices rose by just 0.3% (£1,165) in October to £371,422, well below the ten-year October average of +1.1%.
The subdued rise, says Rightmove, reflects a decade-high number of homes for sale, limiting sellers’ pricing power and dampening activity.
Activity across September softened compared with the same month last year, when the market was lifted by the first Bank Rate cut in four years.
BUYER DEMAND UP
Both new buyer enquiries and new listings were 5% lower year-on-year, while agreed sales dipped by 2%. However, 2025 so far has been more positive overall, with buyer demand up 2%, and both new listings and sales agreed up 5% compared with 2024.
Colleen Babcock, Property Expert at Rightmove, says: “Despite the overall resilience of the 2025 housing market, we’ve not got enough pent-up momentum or recent positive sentiment to spur the usual autumn bounce in property prices.”
“We’re experiencing a decade-high level of property choice for buyers, which means that sellers who are serious about selling have had to acknowledge their limited pricing power and moderate their price expectations.
“In addition, speculation that the Budget may increase the cost of buying or owning a property at the higher end of the market, has given some movers, particularly in the south of England, a reason to wait and see what’s announced in the Budget.”
PRICE SENSITIVE
It remains a highly price-sensitive market, with Rightmove data showing homes that receive an enquiry on their first day of marketing are 22% more likely to secure a buyer than those that take over two weeks.
Nationally, prices are down 0.1% compared with a year ago, as London and the South of England continue to lag behind. Average asking prices in the capital have fallen 1.4%, while every other region has seen annual growth of at least 1%.
WAVERING DEMAND
Tom Bill, head of UK residential research at Knight Frank, says: “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, as speculation over the Budget becomes a prolonged and frustrating game of ‘guess the tax rise’.”
WAIT AND SEE
Matt Smith, Rightmove’s mortgage expert, adds: “Mortgage rates have plateaued over the last month, with some average rates rising and others falling, as lenders hit the pause button leading up to the Budget.
“The cost of financing mortgages has come down again, so we’re likely to start seeing some very gradual drops in average rates soon.
“However, until the Budget at the end of November, we’re likely to see a very quiet market with few shifts in rates, as lenders wait to see how they may be affected by any policy announcements.
“Average mortgage rates, particularly two-year fixed rates, are still lower than they were a year ago. Combined with flat house prices and improved lending criteria, many home-movers may find their affordability significantly improved compared with last year.”
CAUTIOUS STANCE
In London, high-end buyers are taking a cautious stance. Marc von Grundherr, director of Benham and Reeves, says: “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.
“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.”
MARKET REFORM
Rightmove continues to call for long-term reforms to boost market mobility.
Babcock says: “Rightmove has been calling for stamp duty reform for some time now, and we believe that abolishing it completely would remove one of the biggest barriers to movement. Increasing the thresholds would be a help, but going further would be a huge step forward.”
Nathan Emerson, Chief Executive at Propertymark, adds: “While year-to-date figures show positive signs, 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 confidence, particularly in the South of England.
“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.”
FIRST-TIME BUYERS
James Nightingall, founder of HomeFinder AI, says: “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.”
