UK House Price Growth Slows as Buyers Wait for Budget
House prices in the UK grew more slowly in October as many buyers held off making purchases ahead of the government’s budget, which could include new property taxes.
According to Nationwide, the average house price went up by 0.3% in October to £272,226, compared with a 0.5% rise in September. Prices were 2.4% higher than a year ago, up slightly from the 2.2% annual growth in September.
Some experts say the market is calm but cautious, especially among buyers of expensive homes, who may be waiting to see if the budget on 26 November brings higher taxes on property sales.
The property website Rightmove said the number of homes being listed for sale remains steady, but there was no usual “autumn bounce” in asking prices.
Anthony Codling, a housing analyst at RBC Capital Markets, said: “Buyers are waiting to see what next month’s budget brings. The housing market is resilient – prices are still near record highs even though mortgage rates are more than double what they were before Covid.”
Officials are reportedly considering a new tax on homes worth over £500,000, though it’s unclear whether Chancellor Rachel Reeves will include it in the budget.
Amy Reynolds, from the estate agency Antony Roberts in west London, said the market was “slow, especially at the higher end.”
Falling interest rates have helped support the market. The Bank of England cut borrowing costs in August, and another cut is expected soon.
Robert Gardner, Nationwide’s chief economist, said the housing market has been stable, with house prices and mortgage approvals remaining close to pre-pandemic levels, despite high borrowing costs.
He added that the market’s steady performance shows resilience, even though consumer confidence is low and the job market is weakening.
Nationwide expects housing affordability to improve slightly in the coming months as incomes rise faster than house prices and borrowing costs continue to fall.
Published: 1st November 2025
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