House Prices Steady as Market Strengthens

House Prices Steady at 1.3% as Market Activity Strengthens

The housing market remains more active than this time last year. Buyer demand softened marginally over the summer yet remains 4% above 2024 levels, underpinning a 5% rise in agreed sales.

Annual price growth has moderated in recent months but appears to have stabilised at 1.3%. This is down from 2.1% at the start of 2025, but well ahead of the 0.6% increase seen a year ago.

Availability

The slower rate of growth reflects improved stock availability, with 10% more homes on the market year-on-year — as well as persistent affordability pressures, particularly in southern England.

Notably, house prices continue to underperform average earnings, which are up 4.7%. This dynamic, sustained for nearly three years, is gradually easing affordability constraints. As a result, demand is holding firm and transactions remain well supported.