Published 29th September 2025

Executive summary

• House price inflation running at 1.4% to August 2025
• Pre-Budget tax speculation hits activity for higher-value homes – demand down 11% for homes priced at £1m+ and fewer new listings over £500,000
• Stronger price inflation in more affordable areas – up to +2.8%
• Mortgage rates stable at 4-5%, supporting demand but unlikely to fall in the near term
• North/south divide in price inflation and activity widens – weaker southern England and stronger rest of UK
• Market activity is set to plateau in coming weeks, but serious buyers and sellers shouldn’t put decisions on hold

See our London House Price Index and detailed price metrics for 65 cities.