- Prices falter in the south as buyers and sellers brace for rumoured tax changes
House prices fell in September, according to Halifax, as buyers and sellers hold off ahead of rumoured property tax changes in the November Budget.
It said prices dropped by 0.3 per cent last month, with the typical home now selling for £298,184, down from £298,978 in August. Last month, prices went up by 0.2 per cent.
It means property prices are up only 0.3 per cent since the start of 2025 and just 1.3 per cent higher than they were in September last year.
However, some areas have seen prices grow by much more.
Homes in Northern Ireland are up 6.5 per cent over the past year while in Scotland they are 4.5 per cent higher.
The North East of England saw prices rise 4.8 per cent followed by the North West at 3.9 per cent.
Southern England was a different story, with prices falling in many places. In the South West, home values are down 0.2 per cent over the past year with prices now £303,067 on average.
Meanwhile, prices are only up 0.6 per cent in London and 0.2 per cent in the South East.
The capital is the most expensive part of the UK, with an average property value of £543,497.
Tom Bill, head of UK residential research at Knight Frank, blames property tax fears for the fall and says he expects prices to fall further from here until the nation has clarity about the future.
Chancellor Rachel Reeves is said to be considering several tax changes which would affect homeowners in the 26 November Budget, including making stamp duty an annual tax rather than a one-off payment and charging capital gains tax when people sell homes worth over £1.5million.
Bill said: ‘Sellers are getting the message that house prices are under pressure due to higher levels of supply and a creeping mood of caution as November’s Budget approaches.
‘Stable mortgage rates have supported demand but we believe prices will continue to dip modestly before ending the year broadly flat.’
Buying agent Jonathan Hopper, chief executive of Garrington Property Finders added: ‘Many buyers remain cautious – though we are seeing different behaviour at different rungs of the property ladder.
‘Rumours of new property or wealth taxes have had a profound chilling effect at the top of the market and many owners are opting to sit tight rather than risk moving too soon.
‘On the first rung, the combination of flat or even falling prices with lower mortgage interest rates is encouraging a steady stream of first-time buyers to take the plunge and look for their first home.’
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