Essentially Mortgages Q4 Autumn 2025

What’s in Store for the Housing Market This Autumn?

The seasons may have changed, but the UK housing market continues to favour buyers thanks to a high volume of available properties and a modest improvement in affordability.

A Buyer’s Market

As the market transitioned into autumn, property supply reached its highest level in a decade, according to Rightmove. Sellers have therefore recognised the need to price competitively if they want to attract serious buyers.

Colleen Babcock, Property Expert at Rightmove, commented:

“We’re seeing an interesting dynamic between pricing and activity levels right now. The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. What’s most important to remember in this market is that the price is key to selling.”

The increase in available properties has created greater choice for buyers and increased competition among sellers, making realistic pricing more important than ever.

House Price Update

Figures from Rightmove show that asking prices fell by 1.2% in July, marking the largest July decline in more than 20 years. However, prices remain 0.1% higher than the same period last year, demonstrating a degree of resilience in the market.

As a result of increased competition among sellers, Rightmove has revised its forecast for UK house price growth in 2025, reducing expectations from 4% to 2%.

Meanwhile, Zoopla’s August House Price Index reported the average UK property price at £270,000, representing annual growth of 1.3%.

Regional differences continue to be evident, with northern England and Scotland experiencing steady growth, while southern regions continue to see more subdued performance.

Improving Affordability

Affordability has improved in recent months, supported by falling mortgage rates.

In August, the average five-year fixed mortgage rate dropped below 5% for the first time since May 2023, providing welcome relief for prospective buyers.

Market activity also remains encouraging:

• Agreed property sales increased by 5%
• Buyer enquiries rose by 6% during August
• Mortgage affordability continues to improve as borrowing costs ease

These factors are helping to maintain confidence among buyers despite ongoing economic uncertainty.

Autumn Outlook

For Buyers

Greater property choice, improved affordability and increased negotiating power mean autumn could be an excellent time to secure value in the market.

For Sellers

Pricing remains critical. Overpricing a property in the current market risks it being overlooked in favour of more competitively priced alternatives.

For the Market Overall

While only modest house price growth is expected, steady transaction levels and the possibility of further interest rate cuts could help maintain momentum throughout the autumn months.

Key Takeaway

The UK housing market remains active and competitive. Buyers are benefiting from greater choice and improving affordability, while sellers need to be realistic with pricing to stand out. Although significant price growth is unlikely in the short term, current conditions suggest a stable and resilient market heading into the final months of the year.

Sources: Rightmove (2025), Zoopla House Price Index (2025).