The average UK property price remained unchanged in September, following a 0.3% dip in August, while annual growth also remained flat.

House prices remained unchanged in September (0.0%), following a slight dip of 0.3% in August, according to the latest Lloyds House Price Index. The average UK property price is now £298,441, up from £298,395 in August. Prices were also unchanged annually compared to September last year.

Nationally, Northern Ireland leads the way, with annual house price growth rising to 7.4% from 6.8% last month, while Scotland and Wales have also grown, to 3.4% and 1.2%, respectively. Regionally in England, the strongest annual growth remains in the north, with the North East recording growth of 2.4%. Much of southern England remains under pressure, with Greater London prices down 2.2%, the South East down 2.1% and Eastern England down 1.6%.

Confidence is key

Andrew Asaam, Mortgages Director at Lloyds, says the housing market has been fairly subdued overall, but property prices have largely remained stable despite rising interest rates. He says this is also reflected in wider economic data, where household spending has remained largely unchanged, even though uncertainty around energy prices and other cost pressures continues due to the ongoing conflict in the Middle East.

‘Whether that picture continues is likely to depend on how confident consumers feel that the latest cost-of-living pressures will prove temporary,’ he says. ‘Confidence has long been a key driver of housing market activity and will play an important role in shaping demand over the remainder of this year and into 2027.’

Balance between caution and demand

For now, at least, Asaam says that the housing market appears stable, with buyer caution balanced by a continued underlying demand.

‘While higher mortgage rates and wider economic uncertainty are encouraging some people to take a more measured approach, new enquiries from prospective buyers are now at their highest since February,’ he reveals. ‘That should help sustain activity in the near term, with any movement in house prices likely to remain modest.’

Les Pick, MB Associates' Sales & Operations Director, remains positive about the UK housing market, especially here in Surrey. 'Surrey continues to be an incredibly desirable place to live, offering excellent transport links into London, outstanding schools, attractive countryside and thriving communities. These qualities underpin long-term demand and help make the county an appealing choice for families, professionals and downsizers alike,' says Les.

More realistic property prices

'We should also remember that a modest correction in local house prices isn't necessarily bad news,' says Les. 'For first-time buyers and those looking to move up the property ladder, greater price stability and more realistic asking prices can create opportunities that simply weren't available a few years ago. There are bargains to be found where sales are forced; it’s a buyers’ market.'

The appeal of living in Surrey

Les adds that market stability is a good thing. 'A stable housing market isn't a weak housing market,' he adds. 'In many respects, it's exactly what buyers and sellers need to move forward with confidence. In my view, Surrey's underlying appeal remains strong. As confidence gradually returns, and demand for property ownership continues against a more expensive rental market, I believe more buyers will enter the market.'

If you’re hoping to buy in the near future, seeking the support and advice of an experienced mortgage broker is always a wise choice. Expert market knowledge can help you secure the best deal for your needs. Whenever you need us, we’re here to help.