UK property price indices have recorded year-on-year falls for the first time this year, with several major indices reporting declines of less than 1% as market conditions continue to deteriorate for sellers.
According to Rightmove, sellers are contending with a 12-year high in the number of competing properties on the market. Colleen Babcock, property expert at Rightmove, noted that whilst almost two-thirds of homes successfully find a buyer, success rates vary significantly by region. Over 90% of properties coming to market sell in Scotland, compared to less than half in London.
Rightmove reported the largest August price drop since 2018, despite a modest increase in buyer demand following the summer period.
Extended sale times and regional variations
Home.co.uk data shows a typical sale now takes 22 days longer than a year ago, adding almost another month to the sales process. The slowdown comes as estate agents adapt their operations to changing market conditions.
Nationwide reported annual house price growth halving to 0.8% in September, the weakest rate since December 2025. Prices fell 0.2% month-on-month after seasonal adjustments. Robert Gardner, Nationwide’s Chief Economist, attributed the subdued market to an uncertain economic backdrop, geopolitical tensions affecting energy prices, and upward pressure on mortgage rates.
However, Gardner suggested affordability is improving as house price growth remains below earnings growth, with these gains only partially offset by higher mortgage rates. The index found terraced homes are currently the easiest property type to sell.
Lender perspectives and stock levels
Lloyds Banking Group noted that average house prices edged down in August. Andrew Assam, Mortgages Director at Lloyds, provided context by pointing out that average house prices remain approximately 25% higher than at the end of 2019, despite substantial interest rate increases.
Zoopla data indicates buyer activity is beginning to recover after the summer slowdown, though agents hold 5% more stock than a year ago. Richard Donnell, Executive Director at Zoopla, stated that the highest mortgage rates for three years are putting pressure on buying power.
The data suggests agents face challenging conditions in the months ahead, with sellers needing to price realistically to attract buyers in an increasingly competitive market. Lloyds expects the market to remain subdued but stable, with wage growth and employment levels supporting demand from those needing to move.
