FLAT PRICES, BUSIER MARKET
MARKETS RARELY STAND STILL, EVEN WHEN THE FIGURES SUGGEST OTHERWISE.
Underneath a flat set of national house price numbers, buyer interest is building, more sellers are bringing homes to market, and rents are continuing to climb. This is not a market that has stopped. It is one that has steadied after several years of sharp movement in both directions, and steadiness brings its own opportunities.
Whether you are planning a move or weighing up an investment this autumn, the detail beneath the headline matters far more than the headline itself.
THE BIGGER PICTURE
UK house prices were unchanged in September, following a fall of 0.3% in August, leaving the average property at £298,441 and annual growth flat at 0.0%.*
Activity is softer than a year ago: mortgage approvals for house purchases dropped to 54,918, down 16.0% on the same month last year, while residential transactions eased by 1.5% to 95,220.*
Meanwhile, the rental market has seen growth, with the average UK rent on a new tenancy reaching £1,387, up 3.3% over the year.^
WHAT THIS MEANS FOR SELLERS
The encouraging news is that buyer interest is building. New enquiries from prospective buyers are at their highest level since February, and the latest Royal Institution of Chartered Surveyors (RICS) survey shows the same direction of travel. Buyer enquiries have improved by 7%, with newly agreed sales recovering by 11%.*
Buyers are still out there. They are simply taking longer and looking harder before they commit. The complication is that other sellers have noticed. New instructions, meaning the number of fresh homes coming to market, rose to a net balance of zero from -2%.*
More choice for buyers means your asking price has to be right from day one, because a home that lingers invites an offer below where you could have started. Where you are also matters: prices rose 2.4% over the year in the North East and by 1.9% in the North West, while Greater London fell 2.2% to £531,548 and the South East fell 2.1% to £380,829.*
This is where a local expert comes in. Your local branch can tell you what buyers are searching for in your area, which is a far better guide than a national average - contact us today.
WHAT THIS MEANS FOR BUYERS
Flat prices and more homes on the market put buyers in a stronger position than you may realise. The typical first-time buyer property cost £236,779 in September, which has remained largely flat from August and still below the record of £241,244 set in February.* In other words, the ground has not shifted under you while you have been saving.
Affordability remains the real constraint, particularly across southern England where higher values stretch budgets furthest. Higher mortgage rates, meaning the interest you pay on your home loan, have encouraged many people to take a more measured approach, though lenders are offering a growing range of low-deposit products.*
With competition among buyers lighter than in recent years, you have room to negotiate and time to arrange your finance properly. Speak to a mortgage adviser before viewing properties, so that when you find the right home you can move with confidence.
WHAT IS HAPPENING IN THE LETTINGS MARKET
Many would-be buyers are choosing to wait, and that is showing in the figures. Average UK rents including London climbed 0.4% in the month and 3.3% over the year to £1,387, with London reaching £2,272, up 1.5% since August.^
Strongest annual growth came from the South West at 5.4% to £1,274, Scotland at 4.9% to £1,053 and the North East at 3.7% to £732.^ This shows that demand is holding firm in the lettings market while sales activity stays subdued.
However, as always regional differences are something to pay attention to. Eight of the twelve regions tracked saw rents dip month on month, with Scotland and the South East both down 1.0%, and Wales 0.4% lower than a year ago at £920.^ Excluding London, the UK average slipped 0.3% in the month to £1,176.^
For anyone looking to buy, the combination of flat capital values and firm rental income is a reasonable entry point, especially in northern regions where purchase prices are lower and rental growth has been strongest. Yield is earned at the point of purchase, so take your time over the numbers.
WHAT THIS MEANS IN THE COMING MONTHS
Much now rests on confidence. As Lloyds notes, household spending has held up better than expected, and whether that continues depends on how temporary people believe the current cost pressures will prove, with any price movement likely to stay modest for the rest of this year and into 2027.*
A steady market is a workable market. Whether you are selling, buying or letting, the advantage goes to those who prepare early and price realistically.
Correct at the time of publishing – 15/10/2026
Sources:
*Lloyds HPI, September 2026
^HomeLet Rental Index September 2026
MKT/CS/UKON/071026
SPEAK TO US TODAY
