Average house prices in the UK increased by 2.9% to an average of £292,000 in the year to September, while also being 0.3% down compared to August, says the Office for National Statistics (ONS).
The latest price index from the ONS shows that there was a 2.5% increase in house prices in England year on year, with the average price reaching £309,000.
Prices also increased slightly in Wales by 0.4% to £217,000, while Scotland saw bigger growth, rising 5.7% to £198,000.
Northern Irland saw average prices increase by 6.2% in the three months to September compared to the same period last year.
In London, prices fell by 0.5% year on year and 0.8% month on month to £526,000 in September.
The sharpest annual growth was seen in the North East, where prices rose by 6.5% to £171,000.
Richmond estate agency Antony Roberts’ head of sales Amy Reynolds said: “With house prices holding fairly steady and sellers more realistic about pricing, it could be the nudge buyers need to act. In saying that, mortgage rates remain high and that will impact buyers’ decisions, perhaps deciding to wait until they come down again.
“However, first-time buyers don’t have the luxury of delaying a move as they could potentially save thousands of pounds in stamp duty if they transact before 31 March.
“As we head towards the end of the year, we expect lower transaction levels due to affordability pressures and buyers taking longer to commit.
“The exodus of landlords, driven by tax and regulatory changes, has dampened activity in the buy-to-let sector, impacting overall market turnover.
“In areas where stock is limited, markets will have remained steady, particularly the family home market with work-from-home potential.”
North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf said: “At first glance, these figures show the housing market to be demonstrating continuing resilience.
“However, while this is the most comprehensive of all the price surveys as it includes cash and mortgaged transactions, it reflects buyer and seller decision-making from a few months ago at least.
“On the ground since, we have had to contend with worries about the Budget and then its fallout.
“The result has been more caution and heavier negotiation over available properties, despite the recent drop in mortgage rates.
“Worries remain about the pace of further falls in rates and increases in inflation as buyers want to ensure they have a sufficient buffer against potentially rising costs.”
Quilter financial planner Holly Tomlinson said: “The slight dip [month on month] reflects the usual seasonal slowdown, but also hints at growing caution among buyers and sellers amid ongoing economic and policy uncertainty.
“Higher stamp duty for second-home buyers and landlords aims to ease competition for first-time buyers, but it risks exacerbating rental supply shortages, particularly in urban areas.
“These changes, coupled with looming reductions in the first-time buyer stamp duty threshold from March 2025, could drive a rush of activity in the coming months as buyers try to beat the deadline.”
