Annual price fall driven by south, which could be harder hit by rumoured property taxes
- The average price of property coming to the market for sale rises by 0.4% (+£1,517) this month to £370,257. However, average new seller asking prices are now 0.1% below this time last year following several months of muted price growth
- The dip in annual prices is driven by London and the south, as the south underperforms the rest of Great Britain:
- Competitive pricing is even more vital in the south. The number of homes for sale in the south is up by 9% on 2024, compared with 2% elsewhere, and it takes an average of five days longer to find a buyer
- However, the number of sales being agreed is 4% ahead of this time last year. In the south of England, it is still up by 3% year-on-year, while it’s up by 5% across the rest of Great Britain
- Rightmove’s real-time data shows no immediate reaction from movers to property tax rumours. However, jitters around what could happen in the Autumn Budget risk slowing the parts of the market that are already underperforming:
- In London, more than half (59%) of agreed property sales so far this year have been over £500,000 and would be subject to the speculated new tax replacing stamp duty, versus an average of 22% outside London
- Ahead of the September Bank Rate decision, it’s over a year since the first Bank Rate cut for four years in August 2024. Since then, Rightmove’s Mortgage Tracker shows the average two-year fixed mortgage rate has reduced from 5.03% to 4.52%:
- Improved buyer affordability, sensible pricing and high choice of property are encouraging many to buy
Monthly new seller asking prices rise in September for the first time since May
Average asking prices dip by 0.1% below this time last year
Number of sales agreed up by 4% compared to last year
National average asking price
Sep 2025
£370,257
Aug 2025
£368,740
MoM change
+0.4%
National average asking price by market sector (excluding inner London)
First time buyers
£227,133
MoM change
+0.4%
Second-steppers
£345,058
MoM change
+0.3%
Top of the ladder
£669,139
MoM change
-0.5%
“We’d expect to see a slight uptick in new seller asking prices in September, with the traditional back to school season boosting activity heading into autumn. This year’s 0.4% September price rise is a little lower than the norm, which is an average of 0.6% at this time of year. However, prices have now dipped slightly from where they were at this time last year after a summer of competitive pricing by sellers, and it’s the south of England which is driving this small dip. It’s the sensible and attractive seller pricing we’ve been reporting which has been helping to drive more sales activity compared to last year. Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.
“Rumours of property tax changes began swirling in mid August, and with the Budget itself not arriving until the end of November, this kind of extended uncertainty can affect market activity, especially in the higher price brackets. Movers want to be confident in planning their moving costs. Our real-time data has not yet picked up any major shifts, however it’s understandable that those who could be negatively affected by the rumoured changes might be in the process of reassessing their short- and medium-term plans. Our analysis highlights how London and south England-centric the changes would be, and these are the areas that are already performing less strongly.”
Colleen Babcock, property expert at Rightmove