UK house price growth slows as Reeves’ budget looms
The average cost of a UK house fell by £794 in September as the country’s economic outlook remains uncertain ahead of the government’s upcoming budget in November.
This is according to the latest house price index data from Halifax, which found that the average house in the United Kingdom now costs £298,184.
While this price reflects a year-on-year growth of 1.3%, this annual rate of growth is the slowest recorded since April 2024.
The UK housing market has also remained broadly stable, with price increasing by 0.3% since the beginning of the year.
Halifax Head of Mortgages Amanda Bryden notes that while average national figures reflect stable but slowing growth, this can vary significantly at the local level and depending on the nature of each property.
“It’s also important to remember that prices vary widely depending on characteristics like location and property type. As a result, many homes are available at a cost well below this headline figure,” Bryden said.
“For example, for those looking to take their first step on the property ladder, the typical first-time buyer home costs £236,811, up +1.7% year on year, with pockets of even greater affordability to be found across different regions.”
“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence,” she said.
Bryden added that although the broader economic outlook remains uncertain and some disruption may be expected as a result of changes introduced in the upcoming budget, Halifax expects modest growth to continue for the rest of 2025.
It is not only the UK housing market that is seeing a slowdown ahead of Rachel Reeves’ upcoming budget. UK construction output has fallen to its slowest pace in three months.
Fewer companies are starting projects ahead of potential changes being introduced in the budget which may affect their short-term outlook.
