UK house prices hold steady in September as mortgage costs bite

UK house prices were effectively unchanged in September, according to a leading industry tracker, with the average property valued at £298,441.

The figure comes from Lloyds’ housing price index, the tracker formerly known as the Halifax HPI. Lloyds reported that the September average was broadly in line with both August and the same month a year earlier, signalling a flatlining in prices after months of movement.

Rising mortgage costs weighing on market

Lloyds said rising mortgage costs have started to exert pressure on the market. The bank’s tracker indicates that higher borrowing costs are a factor behind the lack of growth in average house values in September.

Why it matters

A pause in price growth has implications for buyers, sellers and lenders. For prospective purchasers, steady prices could limit urgency driven by short-term expectations of further increases, while sellers may find fewer incentives to list if they are seeking price gains. For lenders, a market where higher mortgage costs suppress transactions may mean slower volumes of new lending.

Context from the housing tracker

The Lloyds index, previously published under the Halifax HPI name, is one of the widely referenced measures of UK house prices. Its September reading — an average of £298,441 — shows no meaningful change from the prior month or from September of last year, underscoring a period of relative stability after volatility earlier in the housing cycle.

What sources report

Lloyds’ own tracker is the source of the figures and the characterisation of rising mortgage costs affecting the market. Multiple editions of the Guardian summarised those findings and highlighted the same average price and the flatlining trend.

Looking ahead

The extent to which mortgage costs continue to influence house prices will depend on future movements in interest rates, lender pricing and broader economic conditions. For now, the Lloyds tracker captures a market where average prices have stalled rather than risen or fallen sharply.