House Price Growth Holds at 1.3% as Market Activity Strengthens
The housing market is showing more momentum than a year ago. Despite a slight dip in summer demand, buyer enquiries remain 4% higher than last year, helping to drive a 5% uplift in agreed sales.
Annual house price growth has eased but appears to have stabilised at 1.3%. This marks a slowdown from the 2.1% rate seen at the start of 2025, but represents firmer growth than the 0.6% recorded a year earlier.
The cooling pace reflects a market with greater choice: the number of homes for sale is 10% higher year-on-year. Affordability pressures, particularly acute in southern England, continue to weigh on upward momentum.
House Prices Still Rising
Crucially, house prices are still rising more slowly than average earnings, which are up 4.7%. This trend, in place for nearly three years, is gradually improving affordability. In turn, this dynamic is underpinning demand and sustaining sales volumes.
