House price growth across the UK eased in the autumn while the pace of rent increases also moderated according to the latest data from the Office for National Statistics.
Average UK house prices rose by 1.7% in the 12 months to October 2025, taking the typical property value to £270,000. That marked a slowdown from annual growth of 2.0% recorded in September.
Prices continued to rise across all nations. In England, the average house price increased by 1.4% to £292,000, while Wales saw a 1.5% rise to £211,000.
Scotland recorded the strongest annual growth, up 3.3 per cent to an average of £192,000.
COOLING RENTAL MARKET
The rental market also showed signs of cooling, though costs remain significantly higher than a year ago.
Average UK private rents rose by 4.4% in the year to November 2025, down from 5.0% growth in October, taking the average monthly rent to £1,366.
In England, rents increased by 4.4% to £1,422, while Wales saw a sharper rise of 6.1% to £820. Scottish rents rose by 3.3% to £1,012 over the same period. In Northern Ireland, where data are available to September, average rents climbed by 6.4% to £871.
Regional differences remain pronounced in England. Annual private rent inflation was highest in the North East, at 8.4%, while London recorded the lowest increase, at 2.8% in the year to November.
The figures suggest that while both house prices and rents continue to rise, momentum has softened as the market adjusts to higher borrowing costs and ongoing pressures on household finances.
INDUSTRY REACTION
Richard Donnell, Executive Director of Zoopla, says: “Slower house price inflation reflects higher stamp duty costs for home buyers and the impact of Budget uncertainty on the market with annual price falls across London.
“Rental inflation continues to slow as a result of weaker demand and 20% more homes available to rent. Lower migration and easier conditions for first time buyers is why demand for rented homes is at a six-year low.”
BUILD MORE HOMES
Nathan Emerson, Chief Executive of Propertymark, says: “Now that any uncertainty regarding anticipated stamp duty reforms across England and Northern Ireland in the build-up to the Autumn Budget is behind us, we should see the flow of housing transactions returning to a much smoother and expected seasonal trend.
“As we head into the new year, we traditionally see a positive uplift in activity with many people choosing to market their property directly after Christmas, as well as buyers firing up their ambition to move as we approach springtime.
“Boosting the supply of new homes to meet an ever-increasing demand remains integral to overall house price stability.
“With firm promises from various governments across the UK, it will be a case of keeping a close eye on progress regarding precisely how many homes are completed as the new year plays out.”
UNHEALTHY IMBALANCE
And he adds: “Though it might be disappointing for many to see that rents on average have increased overall, it is encouraging to see that through 2025, we have witnessed rental inflation trending downwards.
“There remains an unhealthy imbalance between rental supply and demand, however, which continues to contribute to rental prices edging upwards.
“It has been positive to see attention focused on ensuring higher standards and greater consumer protection for those who choose to rent during the year; however, it also remains fundamentally important that investment is encouraged to keep pace with ever-growing demand, as the population continues to expand.”
FUNDAMENTALS ARE SUPPORTIVE
Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “The latest ONS figures show house prices continuing to edge higher, with the UK average up 1.7% year-on-year to £270,000, although the pace of growth has eased from September.
“That moderation reflects a market with far more homes for sale than this time last year, giving buyers the best choice they’ve had in years and keeping price rises in check.
“It’s also important to remember that the past couple of months were shaped by uncertainty ahead of the Autumn Budget. Many buyers and sellers paused while waiting to see whether speculation around property reforms would materialise, which brought an earlier-than-usual seasonal slowdown.
“Even so, the market proved resilient: mortgage approvals held broadly steady in October and sales volumes actually rose month-on-month, underlining that committed, needs-based movers are still transacting.
“Higher supply may put some downward pressure on prices in the very short term.”
“Looking ahead, higher supply may put some downward pressure on prices in the very short term, but the fundamentals remain supportive.
“The OBR is forecasting a modest recovery, with average price growth of around 2.5% a year through to 2030.
“With inflation easing to 3.2%, a rate cut today would be a welcome confidence boost and could help unlock stronger activity as we move into the spring 2026 selling season.”
SIGNIFICANT REGIONAL DIFFERENCES
Jason Tebb, President of OnTheMarket, says: “Property values continued to rise on an annual basis in October albeit at a slower pace, with the average price £5,000 higher than a year ago.
“The ONS figures suggest that in the run-up to the Budget caution and price sensitivity prevailed.
“The average UK house price conceals significant regional differences, with London values in particular recording a sharp contraction.
“This is likely down to increased supply, low buyer demand and stretched affordability in London and the southeast where values are significantly higher than elsewhere in the country and buyers are constrained by higher mortgage rates than in the past, as well as higher living costs.
“With inflation dipping by more than expected to 3.2% in the year to November, this is welcome news as it provides stability for consumers.
“It might also convince the Bank of England to cut interest rates again today. This is important for the housing market as the five base-rate reductions in the past 17 months have given a real boost to buyer and seller confidence and activity, although affordability remains a challenge and is keeping property prices in check to a degree, along with the increase in stock.”
UP-A-BIT, DOWN-A-BIT
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “The continuing pattern of up-a-bit, down-a-bit, in house prices is not surprising but could have been considerably worse bearing in mind intense speculation about the contents of the Budget over the past few months.
“This most comprehensive of all the housing market surveys includes cash and mortgaged sales so is a useful guide to activity.
“Fortunately, most fears proved unfounded so we are expecting a modest rebound, especially in the first-time and second stepper markets where many breathed a collective sigh of relief that the Chancellor had not impacted them.
“Inflation appearing increasingly tamed and interest rates likely to fall this week or if not, very soon after, is contributing to an uplift in confidence.
“Now that the Renters’ Rights Act has become a reality, landlords can see the extent of the changes on their businesses in plain sight.
“As a result, we are seeing some landlords consider exiting the sector with a fair number awaiting a post-Budget sales bounce and we expect to see a further reduction in stock before the Act fully comes into force.
“However, affordability, driven particularly by employment concerns, have held back tenants from overpaying, which explains rents softening in some parts of the market.”
CONSTRUCTIVE OUTLOOK
Amy Reynolds, Head of Sales at Richmond estate agency Antony Roberts, says: “The outlook for the London property market in particular is becoming more constructive.
“Price growth has been muted, particularly at the upper end, but values have broadly stabilised as buyers adjust to higher borrowing costs.
“In London, where affordability and sentiment are highly rate-sensitive, even small shifts in expectations can have an outsized impact on activity.
“A 25 basis point cut from the Bank of England today now looks almost nailed on, with markets also pricing in the possibility of a further cut early next year.
“That brings us closer to the widely-anticipated neutral rate of around 3- to 3.5%.
“For London buyers, this is already feeding through to more competitive mortgage pricing and renewed confidence, which should underpin transaction volumes and support modest price growth, rather than a sharp rebound or further correction.”
