House prices in England and Wales are still under pressure, falling 3% year-on-year, according to the latest Acadata House Price Index. The slowdown reflects a mix of subdued demand, higher borrowing costs, and growing uncertainty ahead of the Autumn Budget — a key event landlords are watching closely for housing and tax policy changes.
Landlords reshaping supply as prices hold steady
The report shows the average sale price in September stood at £355,100, unchanged from August but notably lower than a year earlier. Analysts say landlords and downsizers are adding more homes to the market as refinancing pressures and tax speculation intensify.
Rob Owens, head of research at Acadata, noted that while sales activity has returned to seasonal norms following the stamp duty distortions of recent years, prices remain constrained:
“Average house prices in September stood at £355,100, unchanged from August and 3% lower than the same time last year. Market sentiment continues to be weighed down by economic uncertainty, concerns over employment, and speculation around potential tax changes in the upcoming November Budget.”
For landlords, this shift is double-edged. While softening values create buying opportunities for new entrants, those selling under pressure may face reduced returns. Many long-term investors are choosing to rebalance their portfolios, offloading lower-yield properties while holding onto well-located, energy-efficient stock that remains attractive to tenants.
Budget speculation adds to housing market caution
The approaching Autumn Budget has become a defining factor in market sentiment. Speculation over possible housing incentives — or fresh tax adjustments for property owners — is leaving buyers and landlords hesitant.
Owens said: “With downsizers and landlords adding supply to the market, and refinancing pressures mounting for borrowers, price growth remains constrained.”
However, Acadata points out that supply still lags demand. Even with more listings from landlords, there are an estimated 2–3 million households waiting to buy. Any fiscal measures to boost homeownership — such as stamp duty relief or support for first-time buyers — could quickly revive activity and push prices higher again.
In policy terms, landlords are also awaiting clarity on potential changes to property taxation, particularly capital gains and inheritance rules, which could affect portfolio strategy. Many investors are delaying decisions until after the Chancellor’s statement.
Regional trends and investor implications
Regionally, price declines are most pronounced in southern markets, particularly the South East, while London remains the only area to record a modest annual increase, thanks to international demand and limited central stock.
For buy-to-let investors, these regional disparities underline the value of diversification. Northern and Midlands markets continue to deliver stronger rental yields, even as capital growth slows. Some analysts suggest that current price stagnation could offer “a window of opportunity” for landlords with cash or low leverage to expand portfolios before confidence returns.
Owens concludes that while prices are currently subdued, the underlying housing shortage will ultimately reassert itself:
“Structural undersupply and latent demand from aspiring homeowners suggest that any Budget measures aimed at stimulating housing could quickly shift momentum.”
With fewer expected rate cuts from the Bank of England, the pace of recovery may be gradual — but landlords positioned for the medium term could benefit once the market recalibrates.
Editor’s view
A static housing market may frustrate sellers, but for pragmatic landlords, stability offers room for strategy. With the Budget on the horizon, caution dominates — yet the fundamentals remain unchanged: supply is short, demand is strong, and investors with patience may find today’s subdued prices an opportunity rather than a threat.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 10 October 2025
Sources: Acadata House Price Index (September 2025); UK Finance; HM Treasury; Bank of England.
Related reading: House prices edge down 0.3% in September as rental market steadies
