House price growth slowing in sign of caution before budget

UK house prices rose by a lower-than-expected 1.3% in the year to September, according to Halifax, the weakest such figure since April 2024.

- Julia Kollewe

The reading confounded a Reuters poll of economists that forecast 2.2%, suggesting caution in the market in the run-up to the autumn budget.

The cost of a typical home fell month on month by 0.3%, or £794, to £298,184, reversing a 0.2% rise in August. The average first-time buyer property sold for £236,811, up 1.7% year on year, with pockets of greater affordability across different regions.

Amanda Bryden, the head of mortgages at Halifax, part of Lloyds Banking Group, said: “While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.