- Average house price was £272,000 in September after a 0.6% monthly fall
House prices fell last month, according to latest official figures from the Office for National Statistics.
Every single English region except Yorkshire and the Humber saw prices tip into the red in September, with particularly dramatic drops in London and the South East, the ONS revealed.
Overall, average house prices fell by 0.6 per cent between August and September this year.
The ONS data is based on sold prices from the Land Registry and therefore lags other house price indexes.
However, there are plenty of warning signs that the ONS figures could worsen over the coming months.
Earlier this week it was revealed more home sellers are slashing their asking prices as they struggle to shift their properties ahead of the Autumn Budget.
On the turn: House prices fell month-on-month in every single English region except Yorkshire and the Humber, according to the ONS
Rightmove said asking price reductions of homes already on the market have reached their highest level since February 2024.
Over a third of homes for sale have had an asking price reduction, with average price drops reaching 7 per cent.
Across Britain, average property asking prices fell by £6,589, or 1.8 per cent in November, to £364,833, according to the property portal.
Another closely-watched monthly survey that gives a snapshot of what is happening on the ground across the country comes from the Royal Institution of Chartered Surveyors (Rics).
In its latest survey, Rics members reported that new buyer enquiries were down for the third successive month with most parts of the country are now seeing a decline in new buyer demand.
Looking ahead, more Rics members see prices falling over the next three months than those that think prices will rise.
Jonathan Hopper, chief executive of buying agents Garrington Property Finders believes September’s ONS data has captured the moment ‘the oil tanker began to turn.’
‘Months of pre-Budget jitters among buyers finally pushed down the average price paid for homes across most of Britain,’ said Hopper.
‘On an annual basis, prices are still up everywhere except London. But the gains made earlier this year are being steadily eroded by falls in the prices being paid now.
‘Separate data shows that asking prices are being revised down as sellers adjust their expectations, and on the front line we’re seeing buyers negotiating significant discounts too – all of which is likely to drag prices down further in coming months.
‘While the Land Registry data gives a rear-view of the market, this is the clearest evidence yet of the chilling effect that Budget rumours and speculation have had on buyer sentiment.’
What the ONS figures show
The average house price was £272,000 in September, which is still £7,000 or 2.6 per cent higher than 12 months ago, according to the ONS.
However, the experience of sellers will be different across the country.
In London, average prices fell 1.1 per cent in September and down 1.8 per cent year-on-year, the only region where prices are now lower than they were a year ago.
In the South East, average prices dipped 1.2 per cent, although year-on-year prices are still holding up by a mere 0.9 per cent.
The North East of England also saw prices fall 1.2 per cent between August and September. However, year-on-year average home values remain up 3.5 per cent.
Prices also fell by 0.8 per cent in Wales compared to August, though they rose by 0.4 per cent in Scotland.
Interestingly, the type of property someone owns also matters.
While the average price of a semi-detached house has risen 3.7 per cent over the past year, the average price of a flat hasn’t moved.
