The UK housing market showed further signs of stabilisation in October, with sales activity holding firm, rental arrears easing to their lowest level in three years and evidence that price pressures are moderating, according to new data from Propertymark.
The industry body’s latest Housing Insight report found that the average number of sales agreed per member branch edged up slightly to 7.8 in October, while the number of new prospective buyers registering dipped marginally to an average of 59 per branch.
Viewing levels were broadly unchanged from the previous month, suggesting demand remains steady but cautious.
Sales volumes at a national level also improved. Provisional data from HM Revenue & Customs showed 116,230 residential transactions completed in October, up from 111,700 a year earlier, indicating that activity is gradually recovering despite ongoing affordability pressures.
SUBDUED INSTRUCTIONS
House prices were little changed. The average UK house price stood at £272,000 in September, the latest available data, while year-on-year growth remained weak across most regions, with Northern Ireland the only part of the UK recording annual price progression.
On the supply side, the flow of new instructions remained subdued, with an average of 8.4 homes placed on the market per branch in October. However, stock levels increased, with branches reporting an average of 45 properties available for sale, suggesting a modest improvement in choice for buyers.
APPRAISAL VOLUMES UNCHANGED
Market appraisal volumes, a key indicator of future supply, were broadly unchanged at an average of 19 per branch.
Pricing power remained limited. Propertymark said that only 2% of homes sold for more than their asking price in October, while 89% sold below asking, underlining the continued importance of realistic pricing. Transaction times also remained stretched, with around 39% of sales taking more than 17 weeks to reach exchange, although this figure is showing signs of easing.
BALANCED RENTAL MARKET
In the rental market, conditions appeared to be becoming more balanced. More than half of agents reported that rents were broadly static in October, while 30% said they had seen an overall fall and 17% reported increases. Notably, the proportion of agents reporting issues with rent arrears fell to 1.7%, the lowest level since October 2022.
The wider economic backdrop remains mixed. The Bank of England base rate was unchanged at 4% in October, while inflation stood at 3.6%, still well above the central bank’s 2% target. Inflation linked to owner-occupiers’ housing costs eased to 4.8%, while GDP was estimated to have dipped marginally by 0.2% during the month.
AFFORDABILITY CHALLENGE
Mortgage indicators were less supportive, with the latest data showing a fall in gross mortgage advances, even as the value of new mortgage commitments increased quarter on quarter.
Meanwhile, affordability remains a challenge, with 26% of adults reporting that they found it “very or somewhat difficult” to afford their rent or mortgage payments during October.
Arrears data presented a mixed picture. While the number of mortgage accounts in arrears fell slightly in the third quarter, the total value of arrears increased marginally. New possession cases also rose modestly, reflecting a gradual return to more normalised court activity.
ENCOURAGING PICTURE
Nathan Emerson (main picture, inset), Chief Executive of Propertymark, says: “These latest figures present a broadly encouraging picture as we move through the final quarter of 2025.
“While the number of new prospective buyers per branch dipped slightly in October, sales activity has held firm, with agreed sales edging up to an average of 7.8 per branch. This demonstrates that serious buyers remain committed and that well-priced, well-presented homes are continuing to attract strong interest.”
GROWING STABILITY
And he adds: “On the lettings side, it is particularly positive to see arrears reported at their lowest level since October 2022.
“This signals growing stability and resilience within the rental sector, even against a backdrop of long-term supply challenges. With more than half of agents reporting static rents and nearly a third observing modest declines, the data suggests the rental market may be beginning to find a more sustainable balance.
“Overall, these trends point to a market that is settling, strengthening, and gradually moving into a more predictable rhythm which is welcome news for agents, landlords, and consumers alike.”
