UK house prices edged down by 0.3% in September, according to the latest Halifax House Price Index, bringing the average property value to £298,184. Despite the dip, prices remain 1.3% higher than a year ago, suggesting a broadly stable market as landlords and buyers await November’s Autumn Budget for further clarity on rates and regulation.
Stable outlook despite subdued growth
Halifax said the slight monthly decline equates to a £794 fall in the average house price, with annual growth slowing to its lowest rate since April 2024. Amanda Bryden, Head of Mortgages at Halifax, noted that the figures reflect a “broadly stable” housing market.
“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence,” Bryden said.
For buy-to-let landlords, the subdued house price environment offers a mixed picture: weaker short-term capital growth, but potentially greater opportunities for portfolio expansion at realistic entry prices. Halifax’s data shows that typical first-time buyer homes now cost £236,811, up 1.7% annually — a positive signal for those catering to the lower end of the rental market.
Experts see resilience, not retreat
Industry reaction to the data has been largely calm, with analysts describing the slowdown as a “soft landing” rather than a downturn. Propertymark CEO Nathan Emerson said that the price movement “reflects ongoing pressure from borrowing costs and affordability constraints,” but should be viewed in context after several years of record gains.
“Regional variations remain key,” Emerson added. “A cooling in prices is not unexpected and may even help first-time buyers who’ve struggled to enter the market.”
Daniel Austin, CEO of lender ASK Partners, agreed that the data shows “a glimmer of optimism” despite high borrowing costs. He highlighted the resilience of rental and investment sectors such as build-to-rent and co-living, which continue to attract capital due to strong long-term fundamentals.
“For investors seeking stability amid market uncertainty, UK real estate debt remains a compelling option, offering steady income and insulation from equity volatility,” Austin said.
Meanwhile, Garrington Property Finders CEO Jonathan Hopper said that the market is now “in flux,” shaped by economic weakness, pre-Budget uncertainty, and regional variations in buyer demand. Sellers, he said, are having to price keenly or offer incentives such as Stamp Duty contributions to secure sales.
Landlords weigh opportunities before Autumn Budget
While the monthly drop might unsettle some homeowners, seasoned landlords see opportunity in the current balance of stability and caution. With the Bank of England holding rates steady and inflation easing slightly, market observers expect modest house price growth through the remainder of 2025.
Foxtons CEO Guy Gittins noted that “momentum remains steady,” urging sellers to price realistically if they wish to complete before Christmas. Likewise, Benham and Reeves Director Marc von Grundherr said the modest decline reflects “buyer hesitation ahead of the Autumn Statement,” but added that overall annual growth demonstrates “a market far more resilient than many expected.”
In a more optimistic take, Yopa CEO Verona Frankish described the market as “slow but sustainable,” noting that steady price movement “has created a far healthier landscape for both buyers and sellers.”
For landlords, the current pause in growth may open a window to acquire assets at stable prices before the market picks up again — particularly in regions where rents are rising faster than house prices, supporting stronger yields.
Editor’s view
Landlords should see this as a moment of opportunity rather than alarm. The market is holding steady, buyers are cautious but active, and rental demand remains strong. If anything, this is the kind of breathing space investors have been waiting for. The question is whether the upcoming Budget will build on this stability — or shake it loose again.
Author: Editorial team — UK landlord & buy-to-let news, policy, and finance.
Published: 7 October 2025
Sources: Halifax House Price Index (September 2025); Propertymark; ASK Partners; Garrington Property Finders; Foxtons; Benham and Reeves; Yopa.
Related reading: Landlords track steady house price gains with north ahead of south
