A high supply of properties continues to impact the price of homes, according to the latest house price indices out this month. This means that competitive pricing continues to be the quickest way to secure a sale, particularly as nervousness around autumn budget announcements at the end of November increases.
Rightmove’s latest house price index figures show that the average property price has risen by only 0.3% this month to £371,422. This is below the ten-year average October bounce of +1.1% and follows a softening of activity year-on-year for September compared to the same time last year, when the first base rate cut in four years helped kickstart sales.
Nationwide’s most recent house price index figures put the monthly increase slightly higher at 0.5%, although it notes an overall slowing of house price growth in Q3, with the Southeast and London showing the smallest growth.
Buyer demand up for the year as a whole
The number of new buyers and new sellers coming to market in September both fell by 5% compared to last year, according to Rightmove. Overall new buyer demand is up 2% for 2025 to date and the number of agreed sales has risen 5%.
So what does this mean for pricing if you are looking to sell or buy? Price growth is expected to be modest through the rest of the year. However, the real test comes in what properties actually sell for. Rightmove says that average asking prices are slightly below the same time last year at -0.1%.
The company also warns that, despite a resilient market in 2025, the combination of additional sellers coming to market, up by 5% compared to the same period last year, and speculation that the budget could increase the cost of buying or owning more expensive property, is impacting pricing.
A wait and see approach for more expensive properties
Most of the indices report a slowing down of listings of properties beyond £500,000 as buyers pause to wait to see what the autumn budget will bring. Some sellers of more expensive properties are also holding off listing until they know exactly what impact the budget will have. This is particularly apparent in London and the southeast where more properties are typically above the £500,000 threshold. This could provide opportunities for those who don’t feel they want to wait to see what the budget brings.
Competitive pricing remains important
Competitive pricing will, it seems, continue to be the story of 2025. Sellers must be realistic in their pricing, ensuring they price in line with the rest of the market while buyers will continue to hold some bargaining power. Pricing momentum is slowing rather than accelerating as the budget looms and it’s important to take account of this when pricing your property or assessing the price of a property you are looking to buy. In the current market listening closely to the advice of your estate agent, will be more important than ever.