- Average house prices didn’t move between August and September – and were unchanged from a year earlier too (source: House Price Index – September 2026 | Lloyds)
- The average property price barely budged from £298,395 in August to £298,441, in September – but the regional divide continues to widen
- Higher mortgage rates don’t bode well for the rest of the autumn
Sarah Coles, head of personal finance at AJ Bell, comments:
“The property market clung on to prices in September, after last month’s annual price drop. It’s not much to write home about, especially given that the market usually perks up as the nights draw in, and it may not last either.
“Buyers have done a decent job of defying sky-high mortgage rates, with the average two- and five-year fixed rates now around 6%, and 5% fixed mortgage rates rapidly becoming a thing of the past. Lloyds says new buyer enquiries are growing, but it remains to be seen whether they will stay the course once they’ve realised just how much the mortgage on their new home could cost each month.
“Though not everywhere in the country is being affected equally. House prices in the south – including London, the South East and the East of England are looking increasingly depressed. However, in Northern Ireland, Scotland, Wales and northern England, where property is more affordable, prices continue to rise more strongly.
“If mortgage rates remain high, there’s a decent chance that an unremarkable autumn could make way for a more miserable winter. It could become more of a struggle to sell and we could see prices fall. Falling house prices tend to have an impact on consumer confidence more broadly, because when our home is losing value, we feel less wealthy and may hold back on spending. A more prolonged period of weakness could have wider consequences on the rest of the economy.
First-time buyers – the silver lining
“The small silver lining on the black cloud hanging over the property market is that it could herald some hope for first-time buyers. Prices for these buyers remained unchanged in September, but are still below their highs of February. It means that if you have a decent deposit and a mortgage you can afford, you could snap up a bargain.
“If the mortgage is more of a stretch, there’s no rush because property prices aren’t likely to rise out of reach in a hurry. You can take the time to build your deposit, possibly asking family for help or using the Lifetime ISA to get a bonus from the government. Then, when the time is right, you’ll be in a much stronger position financially.”
