House prices were unchanged in September (0.0%), following a -0.3% fall in August.
This is according to Lloyds Bank, whose monthly index is the one formerly known as the Halifax House Price Index.
The average UK property price is now £298,441, compared to £298,395 in August.
Prices were also unchanged annually (0.0%) compared with September last year
Northern Ireland continues to lead UK annual growth, at +7.4%
Andrew Asaam, Mortgages Director at Lloyds, says: “While the market overall has been fairly subdued, property prices have so far proved resilient during a period of higher mortgage rates, which has been driven by changing expectations around the future path of Base Rate.
“That’s mirrored in wider economic data, with household spending holding up better than many expected despite energy and other cost pressures arising from the Middle East conflict.
“Whether that picture continues is likely to depend on how confident consumers feel that the latest cost‑of‑living pressures will prove temporary.
“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.
“For now, the housing market appears to be balancing buyer caution with continued underlying demand. While higher mortgage rates and wider economic uncertainty are encouraging some people to take a more measured approach, new enquiries from prospective buyers are now at their highest since February.”
In response, some agents fear there may be worse to come.
Tom Bill, head of UK residential research at Knight Frank, comments: “This year has been a story of rising energy prices and stalling house prices, as the unpredictable Middle East conflict unfolds and drives borrowing costs higher.
“This month’s Budget adds to the uncertainty as buyers and sellers wonder which of the recurring tax rumours proves to be true. We think downward price pressure will continue during the final months of the year as the impact of higher mortgage rates feeds slowly through to buyers.”
And Jonathan Hopper, chief executive of Garrington Property Finders, sees it like this: “National averages are an abstraction. The only number that really matters to anyone planning a move is what prices are doing in their area.
“On that score, the two halves of Britain are heading in opposite directions. Prices are rising steadily in Scotland and northern England but sliding across London, southern England and East Anglia.
“It’s in these southern areas, where prices are higher, that buyers are facing the biggest affordability squeeze. With mortgage interest rates now at their highest level in three years, lenders won’t lend as much money to movers as they would have done before.
“This is forcing those who need to move to reduce their budget and prompting many of those who want to move to sit on their hands. The pipeline of buyers is slowing sharply too, and Bank of England data shows the number of mortgage approvals for house purchases in August was down 16% compared to the same month last year.
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, comments: “The market has lost a bit of momentum as we head into the final quarter of the year. Annual price growth has slowed to a crawl, and mortgage approvals are well down on a year ago. Buyers are still out there, but they’re being careful.
“Borrowing costs are the main brake. The base rate has held steady at 3.75%, and fixed mortgage rates have stayed stubbornly high because lenders are pricing in rates staying higher for longer. That’s keeping a lid on affordability and on what buyers can stretch to.
“The other big issue is the upcoming Budget. Uncertainty around potential tax changes is making some buyers and sellers sit on their hands.
The reassurance that stamp duty and council tax won’t be overhauled this time around is helpful, as it reduces a little of the uncertainty we have seen in the past.
“However, it would be far better if stamp duty were to be reduced, in order to give the housing market and wider economy a boost. Regardless, until the Chancellor sits down, a degree of caution is inevitable.”
This article is taken from Landlord Today