Revesto – INDEX
UK Housing Market Update – September 2026
Market Overview
The UK housing market showed a modest seasonal recovery in September, but underlying activity remained weak. Rightmove reported a 0.7% rise in average asking prices for newly listed homes to £367,440, the first monthly increase since May. However, asking prices remained 0.8% below a year earlier and available stock was at a 12-year high.
Nationwide's completed-price index painted a more cautious picture: UK house prices fell 0.2% month-on-month in September and annual growth halved to 0.8%, the weakest annual rate since December 2025. The divergence suggests that autumn asking-price improvement had not yet translated into broad transaction-price momentum.
Key Highlights
- National Average Asking Price (September 2026): £367,440 (+0.7% MoM; -0.8% YoY).
- Nationwide average UK house price: £274,251; annual growth 0.8%.
- Rightmove reported buyer enquiries and agreed sales both 9% below last year's level.
- Homes available for sale reached a 12-year high; only around 61% of newly listed homes were finding a buyer.
- Rightmove's average two-year fixed mortgage rate increased to 5.29% from 5.09% in August.
National Average Asking Price by Market Sector (Excluding Inner London)
| Buyer Type | Average Price | MoM Change | YoY Change |
|---|---|---|---|
| First-time buyers | £225,199 | -0.1% | -0.9% |
| Second-steppers | £344,837 | +0.9% | -0.1% |
| Top of the ladder | £672,728 | +0.9% | +0.5% |
Source: Rightmove (September 2026)
Regional Performance
- Northern markets and Northern Ireland remained materially stronger than southern England. Nationwide reported Northern Ireland at +5.9% year-on-year in Q3.
- East Anglia was the weakest Nationwide region, with annual prices down 0.7%.
- Rightmove reported a sharp success-rate divergence: around 91% of homes in Scotland found a buyer versus only 42% in London.
Mortgage Market
Mortgage costs became a more significant headwind during September. The effective rate on new mortgages reached 4.60% in August, while market fixed rates moved higher in September as bond yields and inflation expectations increased.
By late September, the average two-year fixed rate tracked by Rightmove had risen to 5.29%, increasing pressure on affordability and encouraging some buyers to delay decisions.
Outlook
The September asking-price rebound should be treated as a modest autumn bounce rather than evidence of a broad market reversal. High stock, weaker enquiries and sales, and rising mortgage costs continue to favour buyers.
For Revesto, the implication is a market where quality, location and realistic pricing are increasingly important to liquidity. Development exits should allow for longer sales periods and conservative pricing assumptions.