Average UK house prices increase by 2.6% to £272,000: "Those predicting a crash have once again been proved wrong"
AVERAGE house prices in the UK have increased by 2.6% to £272,000 as experts say "those predicting a crash have once again been proved wrong".
The 2.6% rise, to £272,000, in the 12 months to September 2025, was down from 3.1% in the 12 months to August 2025, official data published today showed.
Average house prices increased to £293,000 (2%) in England, £209,000 (2.7%) in Wales and £194,000 (5.3%) in Scotland, in the 12 months to September 2025.
While average UK monthly private rents increased by 5.0%, to £1,360, in the 12 months to October 2025, down from 5.5% in the 12 months to September 2025.
Average rents increased to £1,416 (5%) in England, £817 (6.7%) in Wales and £1,008 (3.4%) in Scotland, in the 12 months to October 2025.
In Northern Ireland, average rents increased to £866 (6.6%), in the 12 months to August 2025.
In England, private rents annual inflation was highest in the North East (8.9%) and lowest in Yorkshire and The Humber (3.8%), in the 12 months to October 2025.
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said the housing market is resilient.
He added: "Despite high interest rates, high inflation and an economy running on fumes, the property market has shown resilience in 2025. The structural undersupply of property is underpinning the market and preventing prices from falling further.
"Growth is being driven by the North and Midlands, while Southern regions remain flat or slightly down. Simultaneously, pay growth remains robust, supporting affordability and keeping real incomes positive as inflation eases.
“Caution surrounding the pending Autumn Budget has cooled the pace of price growth, but it's very much a moderation and not a reversal. Those predicting a crash have once again been proved wrong, as the market is simply adjusting to a slower pace, not collapsing. A sharp house price correction remains unlikely in the near term.”
Omer Mehmet, Managing Director at Welling-based Trinity Finance, predicted a strong start to 2026 in the housing market.
He continued: "That the rate of house price growth is slowing comes as no surprise given the struggling economy and buyers proving apprehensive ahead of the Budget.
“Many people have understandably put their property plans on hold. But with inflation coming down today, the chances of a rate cut in December have improved. That has the potential to see 2026 start on a strong note but equally what is announced in the Budget next week will be key.”
Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, said it's been a slow year in the market.
He added: "2025 has been a so-so year in the property market. With both consumers and businesses feeling the pinch, unemployment rising and the economy spluttering, confidence is not exactly strong.
"Hopefully inflation coming down a little may see a pre-Christmas rate cut boost. Again, a lot hinges on next week's Budget, which is shaping up to be the biggest for many years."
Pete Mugleston, Mortgage Advisor & Managing Director at Derby-based onlinemortgageadvisor.co.uk, said it makes sense to buy as rental costs keep rising.
He continued: "Rising prices make total sense, even with mortgage rates where they are. Lenders have priced in stability, and buyers have stopped waiting for a crash that isn't coming. We have a chronic shortage of homes and a rental market getting more expensive by the day.
"Buyers who can afford to do so are choosing to buy now because paying a stable mortgage beats chasing spiralling rents. Many will be eager to hear something in the Budget to provide relief on rental price rises."
