Halifax: As rumored tax increases loom over the market, house prices declined in September

According to Halifax, the average cost of a home in the UK was £794 less in September than it was the month before, and prices have remained largely unchanged over the past 12 months

As property price growth remained erratic due to a bleak outlook, data indicates that house prices declined in September, reversing an increase in August.

Halifax recently released new data showing that the average price of a home in the UK dropped 0.3 percent last month, to 298,184, 794 less than it was in August.

The average annual growth rate now stands at its slowest level since April 2024, having dropped from 2% in August to 1.3 percent in September. The change in house prices every quarter is up 0.4 percent.

"This minor monthly decline in home prices reflects a housing market that has remained generally stable; prices are up +0.3% since the beginning of the year," stated Amanda Bryden, Halifax's head of mortgages.

It's also critical to keep in mind that costs can differ significantly based on factors like location and property type. Consequently, a large number of homes are offered for significantly less than this headline price.

The last year has seen difficulties in the housing market. Before activity dipped, a spike in stamp duty caused a rush of transactions before the April deadline.

Recent rumors that property taxes may be raised in the Autumn Budget, which is scheduled to be presented on November 26, have alarmed some buyers, even though the market has begun to recover in recent months.

According to an August Guardian article, Chancellor Rachel Reeves may be thinking of introducing a new tax on the sale of homes valued at over 500,000 to replace stamp duty.

The Treasury may consider extending the capital gains tax to the sale of more expensive homes, according to reports. Although the tax is currently only applied to second-home sales, modifications may make some first-home sales subject to the tax.

Details regarding what could be revealed in the Budget have not been verified by the Treasury.

"The weak data indicates that the market has not only failed to shrug off the effects of April's increase in stamp duty land tax, but that speculation about potential reforms .," stated Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners. is casting a new shadow of doubt.

"Speculation is reducing market activity, especially at the upper end of the market. According to Zoopla, buyer demand has decreased by 11% for homes over £1 million and by 4% for properties over £500,000 as many potential buyers choose to wait and see.

"With borrowing costs still high, weaker household finances, and potential tax changes on the horizon, house prices are likely to remain broadly stable in the near term and regional trends reflecting local supply and demand rather than a clear national direction," said Karen Noye, mortgage expert at Quilter, echoing this sentiment.

Halifax's numbers are in contrast to those published by Nationwide last week, which showed that in September, home prices increased by 0.5 percent following a 0.1 percent decline in August.

Where in the UK is the fastest-growing house price?

With a 62.5 percent increase in property prices over the last year, Northern Ireland is once again the UK region with the strongest house price growth. According to Halifax, the average home in the area now costs £216,496.

The North East had the second-strongest increase in home prices, with average prices rising to 180,443 with an annual change of 40.8 percent.

In general, the north of England and Scotland has seen robust house price growth, while the south and the Midlands have found it more difficult to keep up.

The South West has the worst annual change in house prices. It is the only region in the UK where the average house is now less expensive than it was a year ago, with prices dropping by 0.2 percent to 303,067.

It has not been much better in the South East. Even though prices have increased slightly from a year ago, the region only reported a 0.2 percent annual increase.

With an average home price of 543,497, London continues to have the highest average price, more than 150,000 more than the second most expensive region. Although they have increased by only 0.6 percent over the last year, property prices in the area have stayed largely unchanged.

October 2025, Halifax.