UK house prices soften in October

17th Dec 2025 11:32

(Sharecast News) - UK house prices softened in October, official data showed on Wednesday, weighed down by weakness in the capital.

According to the latest government-compiled data, on average UK house prices dipped 0.1% since September.

Year-on-year, house prices rose 1.7%, to £270,000.

Most regions in England saw either modest declines or small rises over the month, ranging from a 1.3% spark in the north east - the biggest uplift - to a 0.6% dip in the south west.

However, London bucked the trend, with prices sliding 1.9% to £547,000.

As a result, average house prices in England dipped 0.1% in September. Year-on-year they rose 1.4% to £292,00.

Prices were also lower in Wales, off 1.1%. The average property value in the country now stands at £211,000.

The figures align with survey results from the Royal Institution of Chartered Surveyors last week for November. They showed that the UK housing market remained subdued, as pre-Budget jitters undermined confidence.

According to Rics, UK house prices stayed in negative territory - which a net balance of -16 - but there was a larger slump in London, where the balance was -44.

Throughout October and November, there was considerable speculation that the government would introduce a council tax surcharge on properties worth more than £2m.

The levy will particularly affect London as the city has a such a high concentration of expensive homes.

The charge, announced as expected in the Budget, is not due to come into effect until 2028.

The UK house price index is compiled from data supplied by HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Office, and the Valuation Office Agency.