The average UK property value stood at £270,000 in October, but wide variations underscored a divided market

Annual house price growth across the UK slowed to 1.7% in October, down from 2.0% in September, with London recording the steepest decline of any region, according to the Office for National Statistics.

The capital posted an average annual house price dropped of 2.4% in October, making it the weakest-performing region in England. The South West followed with a 1.3% decline, reflecting broader pressures across southern property markets.

The average UK property value stood at £270,000 in October, but wide variations underscored a divided market. In England, average prices reached £292,000, up 1.4% annually, while London’s downturn contrasted sharply with stronger conditions elsewhere.

Market conditions weakened through the second half of 2025 as speculation over potential property tax changes ahead of November’s Budget weighed on prices and transaction levels. Rightmove said average asking prices dropped 1.8% in the four weeks to 6 December, taking the typical listed home to £358,138.

The number of new sellers entering the market in the first half of 2025 was 9% higher than in the same period of 2024, before reversing to 4% below 2024 levels in the second half of the year. Buyer demand followed a similar pattern, running 3% ahead of 2024 in the first half but falling 6% behind in the second half.

The Royal Institution of Chartered Surveyors (RICS) reported that new buyer enquiries declined 32% in November, the weakest reading since November 2023. A report from MoneyWeek noted that separate data from Zoopla showed house prices in London and the South recorded their first decline in 18 months in early November.

Buyer demand across the UK declined 12% year on year, while sales agreed dropped 4%, according to Zoopla.

When house prices dropped it affects wannabe downsizers who are relying on the equity in the home to supplement their retirement income, said Sarah Coles, head of personal finance at Hargreaves Lansdown. It also dents the confidence of homeowners, who feel less well off, and may hold back on spending as a result.