Home costs on the rise once more – however one property sort is bucking the pattern

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Your help makes all of the distinction. Learn extra Property costs within the UK rose as soon as extra in September, following August’s slight fall – however new figures present flats stay out of favour with consumers.

Nationwide information exhibits costs are up 0.5 per cent month to month, holding annual costs rising at 2.2 per cent.

However the statistics present there are main variations in value adjustments between the north and south of the UK, in addition to within the property sort.

Semi-detached properties rose 3.4 per cent over the past 12 months, whereas indifferent (2.5 per cent) and terraced (2.4 per cent) noticed barely slower value rises. The price of flats continues to say no, seeing common costs fall by 0.3 per cent.

Figures additional present the worth of a typical flat growing by round 20 per cent over the previous 10 years – lower than half of the worth progress of terraced homes over the identical interval.

Regardless of the continued year-on-year value progress, the third quarter of 2025 – July to September – noticed a slowdown in value will increase, which specialists consider is linked to Finances uncertainty as folks stay cautious with their cash and plans.

“Annual progress remained regular at 2.2 per cent – a barely increased tempo of progress in comparison with August, although the vast majority of areas noticed a modest slowdown in annual home value progress within the three months to September,” defined Alice Haine, private finance analyst at BestInvest.

“The swirl of hypothesis has prompted some consumers, notably on the high finish of the market, to place buy plans on pause. This might dampen market exercise over the following couple of months if consumers wait to see what they're contending with earlier than they commit.

“Sellers are responding by pricing properties extra competitively, recognising that consumers aren't solely going through increased buy prices but in addition the uncertainty that comes with attainable tax adjustments.”

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Whereas property sort is an element, so too is location.

Houses in Northern Eire and the north of England proceed to see value progress far outstripping that within the south.

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(Nationwide) “The slowdown is sharpest within the commuter belt round London,” mentioned Jonathan Hopper, CEO of Garrington Property Finders.

“The issue right here is that the variety of sellers far outstrips the variety of critical consumers. Even in extremely fascinating areas, sellers are having to cost their properties keenly simply to seize consumers’ consideration, and lots of are providing reductions or sweetening the worth in different methods – maybe by making a contribution to the customer’s stamp responsibility prices – to get a deal achieved.

“This concern is being compounded by the uncertainty surrounding subsequent month’s Finances. Rumours of a shake-up in property and wealth taxes have led many discretionary consumers to take a seat on their arms, and this has utilized the brakes to costs in prime areas. Issues are brisker at cheaper price factors, particularly amongst first-time consumers who're the more than likely to learn from August’s discount within the Financial institution of England’s base charge.

“However whereas these elements matter, the market is in the end pushed by the forces of provide and demand – and that is the place the hole between north and south is popping right into a gulf.

“Common costs in northern England rose virtually 5 occasions sooner than they did within the south throughout the third quarter of the yr, and Scotland and Wales each posted progress charges 4 occasions increased than that of southern England.”

Nationwide, detailed home costs in northern England areas are rising 5.1 per cent yr on yr, versus 0.7 per cent in southern England.

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(Nationwide) “The property business additionally stays at midnight over potential adjustments within the tax regime within the Autumn Assertion. Whereas rumoured tax adjustments, equivalent to a possible property tax on homes price over £500,000, will considerably have an effect on the market, the uncertainty over what’s to return might maintain exercise subdued till extra readability is offered within the Finances,” famous Tanya Elmaz, managing director at Collectively.

“Sellers seeking to full their sale earlier than Christmas have to be getting into the market now with the fitting agent and an added sense of urgency,” added Man Gittins, CEO of Foxtons.