Data from the Office for National Statistics (ONS) showed that annually, house prices across the UK were 1.7% or £5,000 higher than last year.
Average house price inflation was the strongest in Northern Ireland, where a monthly lift of 4.3% and an annual rise of 7.1% saw average values come to £193,247.
This was followed by Wales, which had a more modest growth of 1.1% versus the previous month and 1.5% on the year before, with prices averaging at £210,657.
Meanwhile in Scotland, average house prices came to £191,825, representing a 0.6% fall on the month before and a 3.3% rise compared to the same month a year earlier.
In England, average house prices stood at £291,515 in October, a 0.1% monthly decline and a 1.4% rise on the year before.
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Regionally, the East of England, North East, South East, North West and West Midlands were the only areas of England where average house prices rose monthly.
This was strongest in the North East, where house prices rose 1.3% to £163,153 on average. Annually, this was a growth of 5%, the highest rate of inflation across England.
London recorded the steepest decline in average house prices, with a 1.9% monthly fall and 2.4% yearly drop to £547,468.
Jason Tebb, president of OnTheMarket, said the “sharp contraction” in the capital was “likely down to increased supply, low buyer demand and stretched affordability in London and the South East, where values are significantly higher than elsewhere in the country and buyers are constrained by higher mortgage rates than in the past, as well as higher living costs”.
A subdued but sturdy market
Paresh Raja, CEO of Market Financial Solutions, said: “Growth may have flatlined in September, but the fact that prices have still increased in 2025 overall, despite a significant amount of economic and political uncertainty, speaks volumes about the market’s underlying strength.
“As we head towards 2026, there are two notable reasons for optimism: firstly, the chaos surrounding the Autumn Budget has now passed, and secondly, there are expectations of a base rate cut.”
Raja said a cut would take the base rate to its lowest level since early 2023 and provide a “real boost to borrowers”.
He added: “But even if rates are held, the market is still well-placed to make progress – as long as lenders remain proactive. This means adapting products in line with shifting conditions and giving brokers the tools and flexibility they need to keep transactions moving at pace. With the right support in place, the sector can continue to build fresh momentum into the new year.”
Nick Leeming, chair of Jackson-Stops, said: “The numbers tell a simple story: the floor is holding, but the froth has gone. Reflecting the month before the Budget, today’s ONS figures confirm a market that has been subdued as many waited for fiscal clarity from the Chancellor, but importantly, house prices held their nerve. Market fundamentals keep the wheels turning with prices gently up on the year and remaining stable month-to-month, building a picture of quiet confidence even when under economic strain.
“For buyers, it is likely the Bank of England will reduce interest rates this week and fuel competitive mortgage offers, giving some more leverage and impetus to make their move in January. This is the window buyers have been waiting for – choice, leverage, and stability finally back on their side. Already, in the first few weeks of December, we have seen a sharp uptick in offers and exchanges, with a continued surge in activity expected in the first quarter of the year.”
Average flat prices depreciate
In October, the average price of a flat was £192,892, some 2.6% lower than last year. This was the only property type to see a fall in value.
Detached homes were 1.7% higher in value at £439,489, while terraced homes rose by 2.8% to £228,369.
Semi-detached homes enjoyed the most growth with a 4% increase to £275,656 year-on-year.
Annually, new-build properties were 12.9% more expensive at £370,908. Monthly, average values were just 0.8% higher. The average price of a resold property was £267,112, 1.9% higher than last year and 0.6% more than the previous month.
First-time buyers paid 1.9% more for their homes on average than they did last year, at £228,231. Compared to September, this was 0.1% higher.
Former owner-occupiers paid £331,095 for their homes in October, a 1.3% rise on last year but 0.4% less than the month before.
