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UK House Prices Stall as Mortgage Costs Rise
UK house prices stayed almost the same in September.
The average home cost £298,441.
Mortgage borrowing has become more expensive, so some buyers are being careful.
Even so, more people have been asking about mortgages.
Prices did not move the same way everywhere.
Northern Ireland had the biggest yearly increase, while London had the biggest fall.
First-time buyers paid an average of £236,779 for a home.
Higher mortgage payments can make buying difficult even when prices are not rising.
The average UK house price was £298,441 in September, virtually unchanged from August and September last year.
Prices fell 0.3% month-on-month in August, making September the first month without a monthly decline since then.
Northern Ireland had the strongest annual growth at 7.4%, while Greater London recorded the largest fall at 2.2%.
Higher mortgage costs and economic uncertainty are encouraging buyers to be cautious, although mortgage enquiries are increasing.
The average first-time-buyer property cost £236,779, slightly above August but below February’s record of £241,244.
- Who
- UK homebuyers and sellers, including first-time buyers; the figures were reported by Lloyds.
- What
- Average UK house prices were virtually unchanged, at £298,441.
- Where
- Across the UK, with regional differences including declines in Greater London and growth in Northern Ireland.
- When
- September; the article does not specify the year.
- Why
- Higher mortgage costs and economic uncertainty have made buyers more cautious.
Cautious buyers
Continuing demand
Market momentum
Cautious buyers
Higher mortgage costs and economic uncertainty are making buyers cautious and limiting what some can afford.
Continuing demand
Lloyds mortgages director Andrew Asaam said new enquiries from prospective mortgage borrowers were arriving at their fastest pace since February, indicating demand has not disappeared.
Price outlook
Cautious buyers
Affordability pressures, particularly in expensive southern regions, are weighing on prices; Greater London, the Southeast and eastern England recorded annual declines.
Continuing demand
Asaam said prices had so far proved resilient despite higher mortgage rates, and described the market as balancing buyer caution with underlying demand.
Key facts
- Average UK house price
- £298,441 in September
- Change from August
- Virtually unchanged from £298,395
- Annual UK price change
- Unchanged compared with September last year
- Northern Ireland
- Prices rose 7.4% over the year, the strongest regional growth
- Greater London
- Prices fell 2.2% over the year, the largest regional decline
- First-time-buyer average
- £236,779 in September
- First-time-buyer record
- £241,244, reached in February
Quotes
Andrew Asaam
Lloyds mortgages director
“Confidence has long been a key driver of housing market activity and will play an important role in shaping demand over the remainder of this year and into 2027.”
easterneye.biz
Sources
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