UK property prices are showing fresh signs of softening, with new-seller asking prices in September 2025 posting their first annual decline since January 2024, according to Rightmove. Average asking prices rose 0.4% on the month to £370,257 but were 0.1% lower than a year earlier, with London and southern regions dragging the national figure into negative territory. Rightmove also reported sales agreed running 4% above last year, suggesting demand remains active where homes are priced keenly. Lender indices point to the same loss of momentum. Nationwide said prices slipped 0.1% month-on-month in August, trimming annual growth to 2.1%, while Halifax recorded a 0.3% monthly rise and 2.2% annual growth, emphasizing a largely flat market in real terms. The official UK House Price Index showed that, on a seasonally adjusted basis, average prices fell 0.7% between June and July. On a non-seasonally adjusted basis, prices edged up 0.3% over the month and 2.8% over the year, underlining how the direction of travel depends on the measure and adjustment used. Regional variation remains pronounced, with stronger growth in Northern Ireland and parts of the North, and weaker readings in the South. Survey evidence suggests pricing power continues to ebb. The latest RICS Residential Market Survey shows softer demand and new instructions alongside subdued near-term price expectations, a configuration that typically precedes further modest price falls where sellers resist discounting. Economists point to three factors behind the dip: affordability still stretched after the 2022–23 mortgage shock; a higher volume of listings giving buyers more choice; and policy uncertainty ahead of the November Budget, particularly around possible property-tax changes that could weigh on higher-value southern markets. Rightmove highlighted the South and London as the main drivers of September’s year-on-year decline, while Reuters flagged the combination of softer house prices and easing rent growth as signs of a broader cooling. The interest-rate backdrop is also pivotal. The Bank of England held Bank Rate at 4.0% on 18 September, signaling caution amid still-elevated inflation. That pause leaves many borrowers rolling off cheaper fixes facing higher repayments, reinforcing buyer sensitivity to price and pushing vendors toward realistic pricing. Taken together, the latest data describe a market that is not in freefall but is drifting lower in nominal terms in parts of the country—and falling in real terms once inflation is considered. With stock levels up, rate cuts uncertain, and affordability constrained, agents say the homes that sell are those priced to today’s conditions, not last year’s. Expect continued regional divergence and a gentle grind rather than a sharp correction unless financing costs fall materially. Source: comp.