UK House Price Growth Slows to Weakest Annual Rate Since April 2024, Halifax Reports

Annual Growth Rate Dips to 1.3%

UK house price growth experienced a significant slowdown in September 2025, with the Halifax House Price Index reporting a year-on-year increase of just 1.3%. This figure represents the weakest annual growth recorded since April 2024, according to data released by the mortgage lender on October 7, 2025.

The average UK property price now stands at £298,184. This follows a monthly decrease of 0.3%, or approximately £794, from August to September. This monthly dip contrasts with a 0.2% rise observed in August and fell short of economists' expectations, who had forecast a 0.2% monthly increase and 2.2% annual growth for September.

Market Stability Amidst Uncertainty

Despite the slowdown in annual growth and the monthly price dip, Amanda Bryden, Head of Mortgages at Halifax, stated that the market has 'remained broadly stable,' with prices still up 0.3% since the start of the year. Bryden acknowledged that 'affordability remains a challenge,' but noted that 'a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.' She added that Halifax continues to 'expect modest growth through the remainder of the year,' despite the uncertain broader economic outlook.

For first-time buyers, the average home cost £236,811 in September, representing a 1.7% increase year-on-year.

Regional Variations and Contributing Factors

The report highlighted significant regional variations in house price performance across the UK. Northern Ireland recorded the strongest annual growth, with average values increasing by 6.5% to £216,496. Scotland followed with a 4.5% rise to £215,588, while Wales saw a more modest 1.9% increase to £227,845.

In England, the North East experienced the strongest growth at 4.8%, bringing the average price to £180,443, followed by the North West at 3.9%. Conversely, southern regions generally saw subdued performance, with the South West experiencing a 0.2% annual decline. London and the South East recorded only fractional rises of 0.6% and 0.2% respectively, though London remains the most expensive region with an average property value of £543,497.

Analysts suggest that economic uncertainty, speculation surrounding potential tax reforms in the upcoming Autumn Budget, persistently high borrowing costs, and a slowing jobs market are all contributing to the cautious sentiment among buyers and sellers. This data from Halifax provides a contrasting view to Nationwide Building Society's recent report, which indicated a 0.5% monthly rise and 2.2% annual growth for September, suggesting 'broad stability' in the housing market.