House prices in September 2025 were 0.3% lower than they were in September last year.
Halifax has just released its latest House Price Index for September 2025. It shows a small dip in prices, but overall, the market remains fairly steady.
The average home price now stands at £298,184, which is a slight drop of £794 compared to August. That’s a -0.3% change month-on-month. Over the last year, prices are still up +1.3%, though this is the slowest annual growth since April 2024.
So, while prices aren’t racing ahead, they’re not falling dramatically either. In fact, the market seems to be holding firm despite wider economic uncertainty and ongoing affordability pressures.
A Closer Look at the September Figures
According to Halifax, the September data suggests a calm and stable housing market rather than one showing big changes. Here’s a quick breakdown of the key figures:
- Average house price: £298,184
- Monthly change: -0.3%
- Quarterly change: +0.4%
- Annual change: +1.3%
Prices have nudged down slightly this month, but they’re still +0.3% higher than at the start of 2025. This means that despite some small monthly movements, house prices are largely steady.
What Does This Mean for You?
If you’re a homeowner, this small change probably won’t make much difference to your property’s value. If you’re looking to buy, it might feel like prices are still quite high, but there are signs that the market is becoming more balanced.
The report also highlights how property prices vary depending on where you live and the type of home you’re buying. Not every property follows the same pattern as the national average. For example, first-time buyers are finding that their typical property costs around £236,811, which is up +1.7% year on year.
This means there are still areas where homes are more affordable, and with careful searching and good advice, you can often find opportunities below the headline average.
Find out Your Options
What’s Supporting the Market?
Halifax notes that while affordability is still a challenge, there are some positives helping to steady the market:
- Mortgage rates have fallen slightly in recent months, making borrowing a little more manageable.
- Wage growth has continued, giving buyers a bit more confidence about their finances.
- Steady demand remains across much of the housing market, even as some people hold off to see what happens next with interest rates.
Amanda Bryden, Head of Mortgages at Halifax, explained that this combination has helped support both stability and buyer confidence. While the broader economy still faces uncertainty, the housing market has not seen the kind of sharp falls that some had predicted earlier in the year.
The Broader Picture
Looking at the year so far, the data paints a picture of a housing market that’s holding steady rather than surging ahead. Prices have been moving within a narrow range for most of 2025, and Halifax expects modest growth through the rest of the year.
This isn’t necessarily bad news. A slower market can give both buyers and sellers more time to plan, negotiate and make confident decisions. The days of sharp price spikes and bidding wars have eased in many areas, allowing for a more balanced environment.
For buyers, this could mean:
- A better chance of having offers accepted without overpaying
- More choice in some parts of the country
- A little breathing space to arrange finances and explore mortgage options
For sellers, while price growth may have slowed, the fact that values remain stable is reassuring. The housing market is showing resilience despite ongoing cost-of-living pressures and wider economic uncertainty.
First-Time Buyers Still Active
Halifax’s figures show that first-time buyers continue to play a major role in the market. The typical first home costs £236,811, up slightly from last year. While affordability remains a hurdle, lower mortgage rates and steady wages are helping some people take their first step on the ladder.
There are also regional variations. In some areas, especially outside major cities, homes are still available well below the national average, providing more opportunities for new buyers.
If you’re looking to buy your first home, it’s important to understand what you can afford, how lenders assess applications, and what options are available. That’s where professional advice can make a big difference.
What Happens Next?
Halifax expects the market to remain relatively stable for the rest of 2025, with modest growth likely. Much depends on how interest rates and the wider economy evolve, but for now, things appear steady rather than uncertain.
This period of stability could be a good time to review your mortgage situation, especially if:
- Your fixed-rate deal is ending soon
- You’re considering moving home
- You want to explore remortgaging options to reduce payments or borrow for home improvements
Even small changes in rates or property values can make a difference to your long-term plans, so staying informed is key.
How Kerr & Watson Can Help
If you’re thinking about buying, remortgaging or simply want to understand how the current market affects you, it’s worth having a chat with a professional adviser. At Kerr & Watson, we help you make sense of the numbers and find the right mortgage and protection options for your situation.
We’ll talk through your goals, explain your choices clearly, and handle the details so you can make confident decisions without confusion or stress.
You don’t need to wait for the market to change to get good advice. Whether prices rise or fall slightly, understanding your options now puts you in a stronger position for the months ahead.
If you’d like to find out how the latest Halifax House Price Index affects your plans, get in touch with Kerr & Watson today for clear, friendly advice that’s tailored to you.
The full report for more insights on the current state of the UK housing market: Halifax Price Index September 2025
Source: Halifax
