According to the latest Office for National Statistics figures, this is slightly down from the 3.1% growth rate recorded in August 2025.
The report continued that the average house price for England came to £293,000 in the same period, a rise of 2% or £6,000 from a year prior.
Within England, Yorkshire and the Humber had the highest house price inflation at 4.5%, followed by the East Midlands at 3.7% and North East at 3.5%.
London was the only region that reported negative growth at -1.8%, while the South East and South West had the lowest growth at 0.9% respectively.
The average house price for Wales was estimated at £209,00 0 in September, up 2.7% or £5,000 from the same period last year and an increase from 1.8% growth rate in August.
Aldermore Insights with Jon Cooper: Edition 4 – Budget 2025: Landlords feel the heat, brokers to steer the market
Sponsored by Aldermore
Looking at Scotland, the average house price came to £194,000, up 5.3% or £10,000 from a year earlier. The growth rate in August had been pegged at 3.9%.
The average house price in Northern Ireland was £193,000 between July and September, an increase of 7.1% or £13,000 on the prior period.
Nathan Emerson, CEO of Propertymark, said: “It is encouraging to see equity rising again as this signals a return of buyer confidence and renewed momentum in the market. However, while increasing values can reflect underlying strength, they also underscore the ongoing challenges around affordability and the limited supply of homes.
“To translate this momentum into long-term stability, it would be much welcomed to see the UK Government work closely with the industry to support sustainable growth, ensuring that more people can realistically access home ownership, rather than simply driving prices higher.”
Private rents rise 5% YOY
ONS found that the average private rent in the UK came to £1,360 per month in October, £65 or 5% higher than a year ago.
Looking at England, rents rose by 5% year-on-year to £1,416 in October and is the lowest annual inflation since 2022.
From a regional perspective, the North East had the highest rent inflation at 8.9% followed by the North West and East of England at 6.5% and 5.9% respectively.
Yorkshire and the Humber, London and South East were at the the end of the spectrum with 3.8%, 4.3% and 4.4% growth respectively.
Average rents in Wales stood at £817 in October, a rise of 6.7% annually. This is lower than the record high rise of 9.9% recorded in November 2023.
In Scotland, the average rent came to £1,008 in October, a rise of 34% year-on-year and is the lowest annual rise in over three years.
Average rent in Northern Ireland was £866 in August 2025, an increase of 6.6% on the year before. This compares to 7.1% in the month before.
Emerson added: “An increase in rental prices highlights the continuing pressures faced by the private rented sector. While rising rents may reflect strong demand and limited supply, they also intensify the affordability challenges many tenants are already experiencing.
“Letting agents and landlords will need to navigate these conditions carefully, ensuring any increases remain fair and sustainable. Policymakers must recognise that persistent rental inflation points to a system struggling to meet demand and respond with measures that encourage more homes into the sector rather than driving landlords out
