UK home value progress slumps as values fall in London

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Your help makes all of the distinction. Learn extra Annual home value progress throughout the UK decelerated in October, reaching 1.7 per cent, a dip from the two.0 per cent recorded in September, based on official figures.

The Workplace for Nationwide Statistics (ONS) reported that the common property worth nationwide stood at £270,000 final month.

Regionally, England noticed common costs climb to £292,000, marking a 1.4 per cent annual enhance. Wales skilled a 1.5 per cent rise, bringing its common to £211,000, whereas Scotland's properties averaged £192,000 after a 3.3 per cent annual uplift.

In Northern Eire, the third quarter of 2025 noticed common home costs attain £193,000, representing a major 7.1 per cent annual enhance.

Inside England, the North East had the very best annual home value inflation in October, at 5.0%. It was lowest in London, the place the common home value fell by 2.4%. Home costs additionally fell within the South West by 1.3% on common.

Amy Reynolds, head of gross sales at London-based property company Antony Roberts, stated: “In London, the place affordability and sentiment are extremely rate-sensitive, even small shifts in expectations can have an outsized impression on exercise.”

Sarah Coles, head of private finance at Hargreaves Lansdown, stated: “When home costs fall it impacts wannabe downsizers who're counting on the fairness within the house to complement their retirement earnings. It additionally dents the arrogance of house owners, who really feel much less nicely off, and will maintain again on spending consequently.

“Given how sluggish financial progress is correct now, this might spell extra unhealthy information for the financial system. The one individuals prone to be celebrating are these transferring up the property ladder and first-time patrons.”

The figures have been launched because the ONS stated the speed of Client Costs Index (CPI) inflation slowed to three.2% in November, from 3.6% in October.

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It's the lowest CPI price since March and an even bigger slowdown in inflation than many economists had been anticipating.

The Financial institution of England will announce its subsequent base price determination on Thursday.

Mark Harris, chief govt of mortgage dealer SPF Personal Shoppers, stated on Wednesday: “The chance of one other quarter-point discount in base price at tomorrow’s assembly seems virtually sure.

“Lenders have already supplied debtors with loads of festive cheer by decreasing their fixed-rate mortgages in anticipation of additional base price cuts and there's a rising vary of sub-4% merchandise out there to tempt them. We anticipate this pattern to proceed into the brand new yr, which is encouraging information for these trying to transfer or remortgage.”

Ian Futcher, a monetary planner at wealth supervisor Quilter, stated: “Right this moment’s inflation figures present a marked fall in comparison with final month, and mixed with final week’s disappointing GDP knowledge, the Financial institution of England’s Financial Coverage Committee seems poised to chop charges.

“This might be welcome information for patrons, reinforcing confidence that mortgage charges will proceed their gradual decline into the brand new yr. Markets are already pricing in additional cuts in 2026, which might deliver extra aggressive offers to the market.”

David Hollingworth, affiliate director at L&C Mortgages, stated: “Inflation stays greater than the Financial institution of England’s goal, however this must be sufficient to sign a extra sustainable path of easing.

“Cussed inflation has held again the tempo of price cuts however whereas a December price lower appeared removed from probably in the summertime, it now seems like a cert.

“I’d anticipate to see that competitors to proceed within the new yr, as lenders look to get off on the correct foot.”

Nick Leeming, chairman of property company Jackson-Stops, stated: “As we edge into the brand new yr, it can be crucial for sellers to proceed to cost competitively. It is a precision market, with regional nuances and provide dynamics various extensively between postcodes, placing emphasis on sellers to learn it accurately.

“For patrons, it's probably the Financial institution of England will cut back rates of interest this week and gasoline aggressive mortgage affords, giving some extra leverage and impetus to make their transfer in January.

“That is the window patrons have been ready for – selection, leverage and stability lastly again on their facet. Already within the first few weeks of December we now have seen a pointy uptick in affords and exchanges, with a continued surge in exercise anticipated within the first quarter of the yr.”

The ONS additionally stated common UK month-to-month non-public rents elevated by 4.4% yearly to achieve £1,366 in November. The annual progress price slowed from 5.0% within the 12 months to October.

Nathan Emerson, chief govt of property professionals’ physique Propertymark, stated an “unhealthy imbalance between rental provide and demand” contributes to rental costs edging upwards.