British house prices were unchanged in September as higher mortgage rates and economic uncertainty continued to restrain the UK housing market, according to Lloyds Banking Group.
The average UK property price stood at £298,441, little changed from £298,395 in August, when prices fell 0.3%. House prices were also flat compared with September last year and declined 0.2% over the latest quarter.
Lloyds mortgages director Andrew Asaam said property values have remained resilient despite elevated mortgage rates. Household spending has also held up better than expected amid energy costs and wider financial pressures linked to the Middle East conflict.
However, affordability concerns are making some prospective buyers cautious. Lloyds said new buyer enquiries have reached their highest level since February, potentially supporting housing activity, although any near-term changes in prices are expected to remain modest.
The average price paid by first-time buyers was £236,779, compared with £236,568 in August and below February’s record £241,244. Government initiatives, including the Your First Home scheme for qualifying new-build properties in England and low-deposit mortgages, could provide additional support.
Regional trends remained sharply divided. Northern Ireland recorded the strongest annual UK house price growth at 7.4%, with average prices reaching a record £231,917. Scotland gained 3.4% to £223,330, while Wales increased 1.2% to £231,287.
In England, prices rose 2.4% in the North East, 1.9% in the North West and 0.8% in the West Midlands. Southern England remained weaker due to greater affordability pressures. Greater London prices dropped 2.2% annually to £531,548, while the South East fell 2.1% and Eastern England declined 1.6%.
Other housing indicators also pointed to softer demand. UK residential transactions fell 1.5% to a seasonally adjusted 95,220 in August, according to HMRC estimates. Bank of England data showed mortgage approvals for house purchases declined 1.8% from July to 54,918, leaving approvals 16% below year-earlier levels.
Royal Institution of Chartered Surveyors data showed buyer enquiries and agreed sales improved in August but remained in negative territory, suggesting the UK property market continues to face subdued activity despite signs of stabilisation.


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