October’s UK property market update reveals an interesting picture for buyers, sellers, landlords and tenants. House-price growth has slowed again, rental prices continue to rise, and new sellers are adjusting their expectations as mortgage affordability becomes an increasingly important consideration.
The latest figures from the Office for National Statistics (ONS), released on 21st October, show that average UK house prices increased by just 0.9% over the year to August. Meanwhile, annual rental growth remained at 3.8% in September.
Rightmove’s October House Price Index also reveals that asking prices have risen this month, although the increase is smaller than we would normally expect at this time of year.
So, what does all this mean for anyone considering a property move?
UK House Prices: Growth Slows for the Fourth Consecutive Month
The latest ONS figures show that the average UK property price reached £273,000 in August 2026, representing an annual increase of 0.9%.
That is down from a revised 1.2% in July and marks the fourth consecutive month of slowing annual house-price growth.
However, the figures vary considerably across the UK.
Average property prices now stand at:
- England: £294,000, up 0.4% annually.
- Wales: £216,000, up 3.1%.
- Scotland: £198,000, up 2.9%.
London recorded an annual fall of 2.2%, influenced by declining flat prices, while the North East experienced the strongest annual growth among English regions at 3.2%.
These differences demonstrate why national headlines rarely tell the complete story.
Rightmove: October Asking Prices Rise, But Buyers Remain Price-Conscious
Rightmove’s October House Price Index provides another useful perspective.
The average asking price of a newly marketed property increased by 1.0% this month, equivalent to £3,575, reaching £371,015.
However, that increase is below the typical October rise of 1.3%, and asking prices remain 0.1% lower than a year ago.
There are also noticeable differences between regions.
In London, average asking prices increased by 2.5% during October, recovering some of the ground lost over the summer.
Elsewhere, new sellers in several traditionally more affordable regions reduced their asking prices, including the North East, where prices fell by 2.0%, and Scotland, where they declined by 1.9%.
Rightmove also reported that the number of sales agreed was 8% below the equivalent period last year.
These figures suggest that property transactions are still taking place, but buyers are increasingly conscious of affordability.
Buying: Greater Choice and More Realistic Expectations
For buyers, the current market offers some potentially useful opportunities.
With annual house-price growth slowing and sellers becoming more conscious of affordability, buyers may find greater scope to compare properties carefully and negotiate where appropriate.
The latest Nationwide House Price Index supports this picture.
Nationwide reported that average UK house prices fell by 0.2% in September after seasonal adjustment, while annual growth slowed from 1.6% in August to 0.8%.
The average property price stood at £274,251.
However, buyers should not assume that every property is negotiable simply because national price growth has slowed.
Well-presented homes in desirable locations can still attract considerable interest, particularly when priced realistically.
Tip for buyers
Before making an offer, compare the property with similar homes that have recently sold, rather than relying solely on current asking prices.
It is also worth considering properties that have been available for several weeks. A seller who has already found their next home or wants to move before Christmas may be more open to a sensible offer.
Selling: The Importance of Getting the Price Right
October’s figures provide sellers with a particularly useful reminder about pricing.
Although Rightmove reported a monthly increase in asking prices, the national average remains virtually unchanged compared with a year ago.
This suggests that sellers cannot automatically expect to achieve more simply because the autumn market has arrived.
Buyers are comparing properties carefully, particularly when mortgage repayments are taking up a larger proportion of household budgets.
For sellers, that means the first few weeks of marketing remain extremely important.
An attractive asking price, professional photography, a compelling description and a well-presented home can all help generate interest.
However, the strongest marketing cannot always overcome an asking price that buyers consider unrealistic.
Tip for sellers
We will explain how your asking price compares with recently sold properties, homes currently under offer and competing properties still available – so please feel free to ask us!
Our objective is to attract serious buyers from the outset, rather than launch too high and rely on price reductions later.
Mortgage Market: Borrowing Costs Influence Buyer Decisions
Mortgage affordability continues to shape the housing market.
The latest Bank of England Money and Credit figures show that mortgage approvals for house purchases fell to 54,900 in August, below the previous six-month average of approximately 60,100.
Net mortgage borrowing increased slightly to £4.4 billion, compared with £4.1 billion in July.
More recent figures from Rightmove reveal that the average two-year fixed mortgage rate reached 5.55% in October, compared with 5.29% the previous month.
Rightmove estimates that the increase in mortgage rates since February has added around £250 per month to the cost of a typical new mortgage.
For buyers, these higher borrowing costs can make a significant difference to affordability.
For sellers, they provide another reason to understand what potential purchasers can realistically afford.
Anyone considering a property purchase should obtain up-to-date mortgage advice and calculate repayments carefully before committing.
Lettings and Landlords: Rental Growth Holds Steady at 3.8%
The latest ONS rental figures show that average UK private rents increased by 3.8% in the 12 months to September 2026.
That is unchanged from August’s annual growth rate, although the average monthly rent has increased to £1,406.
Across the UK, average monthly rents reached:
- England: £1,466, up 4.0% annually.
- Wales: £848, up 4.1%.
- Scotland: £1,011, up 0.7%.
- Northern Ireland: £879, up 1.7%, based on the latest available July figures.
Within England, the North West recorded the strongest annual rental growth at 5.7%.
London and the South East recorded the lowest annual growth at 3.5%.
The difference between locations is considerable. For example, the average monthly rent in London reached £2,338, compared with £790 in the North East.
Tip for landlords
Rather than applying the national rental growth percentage automatically, review comparable local properties and consider what your property offers tenants.
A well-maintained home with efficient heating, good insulation and reliable maintenance may be particularly attractive as winter approaches.
Retaining a reliable tenant can also be financially beneficial when compared with the potential costs of a vacant property.
Tip for tenants
When comparing rental properties, look beyond the advertised monthly rent.
Energy efficiency, heating costs, transport connections and the property’s general condition can all affect the overall cost of living there.
Market Insight of the Month: Asking Prices Are Rising, But Actual Price Growth Is Slowing
Perhaps the most interesting development in October is the difference between what sellers are asking for their properties and what the wider house-price figures are telling us.
Rightmove reports that new seller asking prices increased by 1.0% this month.
Meanwhile, the latest ONS figures show that annual growth in completed-sale prices has slowed to 0.9%, and Nationwide reports annual growth of just 0.8% in September.
These indices measure different things and cover different periods, so they cannot be compared directly.
However, together they suggest that sellers’ pricing expectations and buyers’ affordability are becoming increasingly important factors in determining how quickly properties sell.
For buyers, this reinforces the value of researching comparable properties and understanding the local market.
For sellers, it highlights the importance of setting an asking price that reflects current demand rather than relying on what similar homes achieved several months ago.
For landlords, the contrast is equally interesting.
Annual rental growth remains at 3.8%, considerably higher than annual house-price growth.
This does not automatically mean that renting is becoming less affordable than buying, because the two involve different costs and circumstances.
It does, however, show that the sales and rental markets continue to face different pressures.
The important takeaway is that asking prices, completed-sale prices and rental prices are not moving in the same way.
Understanding those differences can help people make more informed property decisions.
One Thing Sellers Should Do This Month: Make Your Home Feel Ready for Winter
October is a useful time to think about how buyers experience your property.
As temperatures fall and evenings become darker, warmth, lighting and comfort become increasingly noticeable during viewings.
Small improvements can make a meaningful difference.
Consider:
- Checking that the heating system and radiators work properly.
- Improving lighting in hallways and darker rooms.
- Clearing gutters and keeping paths free from fallen leaves.
- Repairing draughty windows and doors where possible.
- Making sure rooms feel comfortable and welcoming.
Buyers are not simply assessing the appearance of a property. They are also imagining what it would be like to live there through the winter months.
A home that feels well-maintained and comfortable can make that decision easier.
What Buyers Are Thinking Right Now
October’s market conditions suggest that affordability is likely to be occupying buyers’ minds.
With mortgage rates higher than earlier in the year, buyers may be thinking carefully about the total cost of ownership.
Questions about energy efficiency, maintenance, service charges, council tax and potential improvements are all likely to influence decisions.
This creates an opportunity for sellers who can provide clear information about their property.
It also means buyers should consider their longer-term requirements rather than focusing entirely on the initial purchase price.
A home that offers flexibility, manageable running costs and sufficient space for future needs may prove a better choice than one that simply looks attractive during a viewing.
What Could Happen Next?
The next few weeks could provide further clarity about the direction of the housing market.
The government’s Budget is scheduled for 28th October, and buyers, sellers and mortgage lenders will be watching for announcements that could influence household finances and property decisions.
The Bank of England is also due to publish its September mortgage lending figures on 29th October.
Meanwhile, the next ONS house-price and rental update is scheduled for 18 November.
With borrowing costs remaining an important consideration, future interest rate decisions and mortgage pricing will continue to influence affordability.
However, national economic developments are only part of the picture. Local property supply, demand and the circumstances of individual buyers and sellers will remain equally important.
Final Thoughts
October 2026 is proving to be a month of adjustment rather than dramatic change in the UK property market.
House-price growth has slowed, asking prices have risen modestly, and buyers are becoming increasingly conscious of mortgage affordability.
For sellers, realistic pricing and effective presentation remain essential.
For buyers, a more measured market can create opportunities to compare properties carefully and make informed decisions.
For landlords, rental growth remains positive, although understanding local demand and tenant affordability is increasingly important.
And for tenants, researching the full cost of renting can help make moving decisions more manageable.
If you are considering buying, selling, letting or renting in Northumberland , Elizabeth Humphreys Homes can help you understand what the latest property market figures mean for your circumstances.
Call us on 01665 661170 or email liz@eh-homes.co.uk to speak with our friendly and experienced team.
Note: The information in this article is based on the most recent data available as of August to October 2026 and may change. Always seek professional advice for specific circumstances.
