FX.co ★ UK House Prices Post Smallest Gain in 1½ Years

The Halifax House Price Index indicated a 1.3% year-on-year increase in the UK's housing prices for September 2025, a slowdown from the 2% rise seen in August, and below the anticipated 2.2% growth. This represents the most sluggish annual growth since April 2024, bringing the average property value to £298,184. On a monthly basis, prices decreased by 0.3%, not meeting the forecasted 0.2% increase and mirroring the pace of August. Amanda Bryden, Halifax’s Head of Mortgages, explained that this slight decline signifies a generally stable market, with house prices having risen by 0.3% since January. She highlighted that although affordability continues to challenge buyers, reduced mortgage rates combined with consistent wage growth have bolstered buyer confidence. Currently, the cost for a typical first-time buyer home stands at £236,811, marking a 1.7% increase compared to last year. On a regional scale, Northern Ireland experienced the highest growth at 6.5%, succeeded by Scotland with a 4.5% rise, and the North East at 4.8%. Conversely, the South West reported its second consecutive annual decrease at -0.2%, while London and the South East recorded minimal increases of 0.6% and 0.2%, respectively.