UK House Prices Fall 0.3% in September Amid Market Uncertainty

UK house prices fell by 0.3% in September, with the average property price now at £298,184, reversing a slight increase in August and marking the slowest annual growth rate of 1.3% since April 2024. The market shows regional disparities, with Northern Ireland leading growth at 6.5%, followed by Scotland at 4.5%, and strong rises in the North East and North West of England, while southern regions like the South West experienced slight declines. Experts attribute the market softness to ongoing economic pressures, higher borrowing costs, and uncertainties ahead of potential government tax reforms, including possible changes to stamp duty and capital gains tax in the November Budget. Despite these challenges, steady wage growth and lower mortgage rates have helped sustain buyer confidence, especially for first-time buyers, with their typical home costing £236,811, up 1.7% annually. Analysts expect modest price growth towards the end of the year, although the market remains cautious amid speculation about reforms that could increase costs for homeowners. The government also announced plans to reform the home-buying process to reduce costs and improve transparency for buyers.