UK house prices fall 0.1% in first October decline for years amid autumn Budget fears

The traditional autumn surge in UK house prices was more subdued this October, according to the latest figures from property website Rightmove. Average asking prices rose by just 0.3% (£1,165) last month, bringing the average price of a property to £371,422. This is well below the typical 1.1% increase seen in October over the past decade.

Rightmove attributed the slower growth to a high number of properties on the market, which has limited sellers' ability to push up prices. While October usually brings a rebound in activity following the quieter summer months, this year's market failed to generate the momentum typically seen during the season. Despite the softer-than-usual price rise, the report noted that overall market activity so far this year has remained steady, though some areas are showing signs of increased caution.

Colleen Babcock, a property expert at Rightmove, said: "Despite the overall resilience of the 2025 housing market, we've not got enough pent-up momentum or recent positive sentiment to spur the usual autumn bounce in property prices.

"We're experiencing a decade-high level of property choice for buyers, which means that sellers who are serious about selling have had to acknowledge their limited pricing power and moderate their price expectations.

"In addition, speculation that the Budget may increase the cost of buying or owning a property at the higher end of the market has given some movers, particularly in the south of England, a reason to wait and see what's announced in the Budget."

The average asking price for a home has seen a modest 0.3% monthly increase, resulting in an annual decrease of 0.1%.

The overall average has been pulled down by annual falls in London and the south of England, according to Rightmove, with London's average asking prices dropping by 1.4% over the year.

The report suggested that the higher stamp duty rates introduced in England at the beginning of April continue to affect the pricier southern regions.

Rightmove's mortgage expert, Matt Smith, said: "Average mortgage rates, particularly two-year fixed rates, are still lower than they were a year ago. Combined with flat house prices and improved lending criteria, many home-movers may find their affordability significantly improved compared with last year."

Marc von Grundherr, director of estate agent Benham and Reeves in London, said: "Whilst there is certainly plenty of initial interest in London, we're not seeing as many buyers committing, particularly when it comes to international inquiries."

He added: "Mortgage rates have been largely trending downwards since the (Bank of England) base rate began to stabilise and fall, but stubbornly high inflation continues to delay the pace of cuts that many had hoped for by now. This has left some buyers in a holding pattern, waiting for clearer signs of sustained affordability before committing.

"A great deal of the current hesitation can also be attributed to the upcoming autumn Budget, with many buyers preferring to wait for clarity on taxation and wider economic policy before acting. Once this uncertainty has passed, we expect the market to gather pace.

"London may be trailing the rest of the country for now, but history shows it tends to outperform once momentum builds, and we anticipate that pattern will return as confidence strengthens."

James Nightingall, founder of HomeFinder AI, added that first-time buyers "have perhaps been the one demographic that has shown a similar level of motivation seen during October last year with many aiming to move into their new property by the end of the year".