House costs on the rise once more – however one property kind is bucking the pattern | EUROtoday

Property costs within the UK rose as soon as extra in September, following August’s slight fall – however new figures present flats stay out of favour with consumers.

Nationwide information exhibits costs are up 0.5 per cent month to month, holding annual costs rising at 2.2 per cent.

But the statistics present there are main variations in value modifications between the north and south of the UK, in addition to within the property kind.

Semi-detached properties rose 3.4 per cent over the past 12 months, whereas indifferent (2.5 per cent) and terraced (2.4 per cent) noticed barely slower value rises. The price of flats continues to say no, seeing common costs fall by 0.3 per cent.

Figures additional present the value of a typical flat rising by round 20 per cent over the previous 10 years – lower than half of the value progress of terraced homes over the identical interval.

Despite the continued year-on-year value progress, the third quarter of 2025 – July to September – noticed a slowdown in value will increase, which specialists imagine is linked to Budget uncertainty as individuals stay cautious with their cash and plans.

“Annual growth remained steady at 2.2 per cent – a slightly higher pace of growth compared to August, though the majority of regions saw a modest slowdown in annual house price growth in the three months to September,” defined Alice Haine, private finance analyst at BestInvest.

“The swirl of speculation has prompted some buyers, particularly at the top end of the market, to put purchase plans on pause. This could dampen market activity over the next couple of months if buyers wait to see what they are contending with before they commit.

“Sellers are responding by pricing homes more competitively, recognising that buyers are not only facing higher purchase costs but also the uncertainty that comes with possible tax changes.”

While property kind is an element, so too is location.

Homes in Northern Ireland and the north of England proceed to see value progress far outstripping that within the south.

“The slowdown is sharpest in the commuter belt around London,” stated Jonathan Hopper, CEO of Garrington Property Finders.

“The problem here is that the number of sellers far outstrips the number of serious buyers. Even in highly desirable areas, sellers are having to price their homes keenly just to grab buyers’ attention, and many are offering discounts or sweetening the price in other ways – perhaps by making a contribution to the buyer’s stamp duty costs – to get a deal done.

“This issue is being compounded by the uncertainty surrounding next month’s Budget. Rumours of a shake-up in property and wealth taxes have led many discretionary buyers to sit on their hands and this has applied the brakes to prices in prime areas. Things are brisker at lower price points, especially among first-time buyers who are the most likely to benefit from August’s reduction in the Bank of England’s base rate.

“But while these factors matter, the market is ultimately driven by the forces of supply and demand – and this is where the gap between north and south is turning into a gulf.

“Average prices in northern England rose almost five times faster than they did in the south during the third quarter of the year, and Scotland and Wales both posted growth rates four times higher than that of southern England.”

Nationwide, detailed home costs in northern England areas are rising 5.1 per cent yr on yr, versus 0.7 per cent in southern England.

“The property industry also remains in the dark over potential changes in the tax regime at the Autumn Statement. While rumoured tax changes, such as a potential property tax on houses worth over £500,000, will significantly affect the market, the uncertainty over what’s to come may keep activity subdued until more clarity is provided in the Budget,” famous Tanya Elmaz, managing director at Together.

“Sellers looking to complete their sale before Christmas need to be entering the market now with the right agent and an added sense of urgency,” added Guy Gittins, CEO of Foxtons.