UK house prices fell by 0.1% on a monthly basis in October as buyers remained cautious ahead of the Autumn Budget, the latest UK House Price Index from the Land Registry shows.
Average UK house prices increased by 1.7%, to £270,000, in the 12 months to October, down from 2.0% in the year to September.
Average house prices increased by 1.4% in England, 1.5% in Wales, and 3.3% in Scotland.
The North East was the English region with the highest house price inflation, at 5.0% in the 12 months to October. This was up from 3.0% in the 12 months to September.
Annual house price inflation was lowest in London. Prices fell by 2.4% in the 12 months to October, compared with a fall of 1.6% in September.
Ian Futcher, financial planner at Quilter, commented: “The latest Government house price index shows the housing market largely stalled in October. UK house prices fell by 0.1% on a monthly basis, bringing the average price to £270,000. On a annual basis, prices rose by 1.7%.
“It’s important to note that the Government’s index is a lagging indicator. Other indices have already reported even greater stagnation in November, as many buyers and sellers paused plans ahead of the budget, waiting for clarity on future policy, which contributed to minimal movement in the market.
“Today’s inflation figures show a marked fall compared to last month, and combined with last week’s disappointing GDP data, the Bank of England’s Monetary Policy Committee looks poised to cut rates tomorrow. This would be welcome news for buyers, reinforcing confidence that mortgage rates will continue their gradual decline into the new year. Markets are already pricing in further cuts in 2026, which could bring more competitive deals to the market.
“The housing market has shown resilience throughout 2025 despite the ongoing challenges, but recent months have seen a clear slowdown. Looking ahead, greater certainty following the budget and falling interest rates should support more positive growth in 2026. However, many households will still be facing significantly higher monthly mortgage payments, meaning any recovery is likely to be modest for some time.”
Hamza Behzad, business development director at Finova, said: “As the UK property market adjusts to shifting economic pressures and cautious buyer sentiment, it’s no surprise that house prices are levelling out. Although the Chancellor’s decision to avoid a wider property tax on homes over £500, 000 may have offered some stability, it was not enough to offset wider affordability concerns, particularly for first-time buyers who are looking for properties at the lower end of the market.
“The lack of new first-time buyer support in the Budget has added an extra layer of hesitation for new homeowners, many of whom are now waiting to see what the Government brings forward in the new year. We cannot lean on a ‘one-size-fits-all’ to borrowers’ rapidly changing demands. In 2026, good guidance will be about providing bespoke support to all buyers, including those entering the housing market for the first time.”
Tomer Aboody, director of MT Finance, added: “With the Budget now over and done with, the uncertainty and hesitancy is also over and buyers are ready to make their move. Despite a lot of negative speculation beforehand, the Budget left the property market mostly unscathed.
“With sellers coming to the market and buyers potentially ready to pounce, as well as lower mortgage rates, the scene looks set for a bounce at the start of 2026.
“With the money markets expecting another base rate cut, the improved affordability this will bring will encourage movement – and the market certainly needs that encouragement.”
