House prices across the UK have experienced a decline as buyer interest wanes in anticipation of the upcoming Budget announcement, according to recent analysis of official data.

The Office for National Statistics reports that the average house price in the UK was £271,531 in September, marking a 0.6% decrease from August.

Over the past year, property prices saw a 2.6% increase up to September, slowing from a 3.1% growth rate observed in the year leading to August.

Insights from online estate agency Purplebricks highlight monthly changes, showing that average home values have decreased in nearly all regions of England.

The most significant declines were recorded in the North East, London, and the South East between August and September.

Specifically, the North East experienced a 1.2% drop in prices over the month, bringing the average cost of a home in the area to £161,770.

Londoners experienced a 1.1 per cent monthly drop while those in the South East saw a 1.2 per cent dip.

London homes saw £6,381 shaved off their value, making the average property in the capital now worth £556,454.

The average property in the South East is now worth £383,812 after prices fell £4,658 from August to September this year. 

The ONS’s House Price Index also revealed new buyer enquiries were in ‘negative territory’ for the third successive report, with most parts of the UK seeing a fall in new buyer demand.

The only region to perform positively was Yorkshire and the Humber where homes saw a small 0.3 per cent monthly rise – worth £524 – pushing average values up to £207,877.

Scotland was the strongest performer despite the rise adding just 0.4 per cent or £711 to average values, meaning an average home north of the border costs £194,273.

The annual price change gives a more optimistic view, with overall UK house prices increasing £7,000 over the 12 months to September this year. The average UK home is worth £272,000.

Despite London losing out on average, some boroughs saw positive changes, including Newham, which had the UK’s biggest annual house price rise of £13,535, making the average property worth £419,485

Homes on the Outer Hebrides saw around £13,000 added to values, pricing the average property at £157,282 – significantly lower than the mainland Scottish average of £194,273.

The London borough of Kingston-Upon-Thames and Melton in Leicestershire also performed strongly over the last month.

Kingston homes saw a rise of £12,697 to a £597,586 average while Melton’s house prices rose £12,274 to an average of £293,490.

Newham had the UK’s biggest annual house price rise of £13,535, making the average property worth £419,485. Among those on sale with Purplebricks is this three-bed flat for £500,000

The London borough of Kingston-Upon-Thames saw a monthly rise of £12,697 to a £597,586 average. One of the properties on sale with Purplebricks is this three-bed house for £795,000

House prices in Melton in Leicestershire performed strongly over the last month, rising £12,274 to an average of £293,490. This one-bedroom apartment is on for £140,000 with Purplebricks

The biggest loser in today’s report was Kensington and Chelsea where homes lost an average of £69,856 over the month, pricing properties at around £1,249,415.

Homes in the City of London saw £50,983 knocked off values over the month, pricing the average property there at £662,920.

Average house prices rose in September to £293,000 (2.0 per cent annual growth) in England, £209,000 (2.7 per cent) in Wales and £194,000 (5.3 per cent) in Scotland.

The average house price in Northern Ireland was £193,000 in the third quarter of 2025, up by 7.1 per cent annually.

The English region with the highest house price inflation in September was Yorkshire and the Humber, at 4.5 per cent.

Annual house price inflation in England was weakest in London. House prices in London fell by 1.8 per cent on average in the 12 months to September.

It comes ahead of Chancellor Rachel Reeves’ Budget which will be announced on November 26.

Tom Evans, sales director at Purplebricks Estate Agency said: ‘While this isn’t the result homeowners would have hoped for, a dip in house prices at this time of year is not unexpected.

‘Many buyers and sellers are understandably pausing activity while they wait to see what Rachel Reeves sets out in the Autumn Budget, particularly around housing supply and potential new property taxes.

‘Concerns about tighter rules on second homes and higher-value properties may be causing some uncertainty, but overall 2025 has still been a remarkably strong year for the market.

‘We remain confident the housing sector will finish the year on a positive note.’

Robert Nichols, managing director of Purplebricks Mortgages, added: ‘Forecasts remain steady for both existing homeowners and first-time buyers, but the run-up to the Budget is clearly giving reason for caution.

‘If the Treasury proceeds with proposals to tax properties over £500,000 and revises capital gains exemptions for homes above £1.5million, it could discourage some owners from listing their properties this winter.

‘We also cannot ignore growing concerns about housing availability—supply remains historically low as many homeowners hold off until the policy picture becomes clearer.

‘Even so, lower mortgage rates and a Bank of England base rate holding at 4 per cent are providing some relief and encouraging renewed interest from buyers.

‘With first-time buyers gaining access to higher borrowing limits, many are watching the market closely to see whether now is the time to act before new legislation comes into force in 2026.’

Meanwhile the average private rent in the UK was £1,360 per month in October, the ONS said – £65 (5.0 per cent) higher than 12 months earlier. 

ONS head of housing market indices Aimee North said: ‘UK annual house price inflation slowed in September with the average UK house price now around £272,000.

‘The Yorkshire and the Humber was the English region with the highest house price inflation while the regions with the lowest annual inflation are in the south of England. London is the only region showing an annual fall again.

‘The rental market continues to cool, with UK annual inflation easing for the 10th consecutive month.’

The house and rental price figures were released as the ONS also said that Consumer Prices Index (CPI) inflation slowed to 3.6 per cent in October, from 3.8 per cent in September.

Some commentators suggested this could pave the way for a Bank of England base rate cut soon, easing costs for some mortgage borrowers.