September Market Update

Even with key industry figures on holiday, property remained in the news. Last month saw a slew of official – and unofficial – updates. Here’s what we learnt in August.

1.) House prices increased: HM Land Registry’s latest house price index was released in August. It found the average property value in the UK rose 3.7% in the year to June 2025. The average property price is now £269,000.

Base rate decision

2) Savings for some: those with variable and tracker rate mortgages received good news in August. The Bank of England dropped its base rate to 4%. Tracker and variable mortgage rates trended downwards, saving borrowers with a £100,000 mortgage an average of £15 per month.

Fixed-rate mortgage movement 

3) Lowest rates for 36 months: a decreasing base rate and favourable swap rates resulted in a new milestone. According to Moneyfacts, the average two-year fixed-rate mortgage dipped below 5% for the first time in three years. The new average is 4.99%.

4) Labour proposals leaked: inside information revealed the Government is considering drastic changes to property tax. Considerations include scrapping stamp duty in favour of an annual property tax paid by the seller, introducing a mansion tax and replacing the current council tax. These are just ideas and nothing has been confirmed.

5) Eco differences exposed: analysis of MHCLG English Housing Survey data by the Nationwide found twice as many Scottish homes (2%) have a heat pump, compared to those in England (1%). Adoption of PV solar panels is more even, with 6% of homes having this green feature in England, compared to 7% in Scotland. 

6) Rents increased: according to HomeLet, the UK’s monthly rent climbed again. Tenants now pay an average of £1,313 per month for a new tenancy. Rents are rising fastest in Scotland, while they are plateauing in the South East, the South West and the East of England.

7)  Demand remains strong: landlords had their say on tenant demand. Their experiences were published in Pegasus Insight’s Q2 2025 Landlord Trends report. Of the landlords questioned, 33% described tenant demand as ‘very strong’ and 39% as ‘quite strong’. Only 4% reported ‘weak’ demand.

8) Chances of additional base rate cuts revealed: a new poll of mortgage brokers by Landbay established their base rate cut predictions. It found 52% expected two more reductions before March 2026. Twelve percent said they expected three more cuts.

Re-entering the nest

9) First-time buyers head home: TSB questioned more than 1,000 first-time buyers to find out what it takes to get on the property ladder. Unsurprisingly, 80% moved back in with their parents. Additionally, 96% received financial help towards their deposit from family or friends.

10) Cottage bargains revealed: in August, Zoopla acknowledged the growing appeal of living in a cottage but also acknowledged the cost. It produced a list of the UK’s most affordable places to purchase a cottage. North Lanarkshire in Scotland, Sunderland in the North East and Southampton in the South were the most affordable places to buy a cottage.

Sea views still in fashion

11) Coastal properties commanded a premium: Rightmove’s analytic experts discovered coastal homes with a sea view had a value almost £88,107 higher, on average, than those without. Coastal homes in the East Midlands, the South West and Scotland carried the highest premium. The South East had the smallest price difference between homes with and without waterside views.

12) Energy prices to change: how we heat our homes probably hasn’t crossed your mind during our long, hot summer but August brought change. Ofgem confirmed its latest price cap on 27th August. Energy bills are set to rise by 2% from October this year.

If you would like to know more about your local property market, please get in touch.