A summer of contrasts gives way to a new season, and with it renewed confidence in what the months ahead could bring.
Asking prices have eased and housing stock sits at a 12-year high, meaning sellers face a more competitive landscape than they have in some time. Yet as autumn arrives, buyer activity is beginning to pick up, and signs of a more active market are showing. In the lettings market, rents continue to rise across the country, reflecting the sustained demand that has defined the sector throughout the year.
Whether you’re thinking of selling, searching for your next home, or managing a rental portfolio, understanding what’s driving these shifts will help you make better decisions in the months ahead.
The bigger picture
August has brought a larger-than-usual dip in asking prices, with newly listed homes coming to market at an average of £364,999 - a fall of 2% on the previous month and 1% lower than a year ago.*
At the same time buyers have more choice than they have had for a while with the 12-year high of homes available for this time of year - showing that the buyers' market continues into the month of September.*
The regional picture is also worth noting, with prices up by 1.5% year-on-year in the north of England, while those in the south are down 1.8% - with London seeing the sharpest annual fall of 3.1%.*
Meanwhile, the rental market continues to go from strength to strength. Average UK rents rose for the fifth consecutive month in July, reaching £1,369 per month and sitting 4.3% higher than a year ago, which was the fastest annual rate of growth since September 2024.^
For sellers
If you’re preparing to sell, the most important thing to understand right now is that pricing competitively from the outset isn’t a sign of giving away value – it's a strategy that can help see you get sold. With a record number of homes listed for sale*, buyers have real choice, and overpriced properties continue to be passed over in favour of those that reflect current conditions.
There has also been a modest lift in buyer demand since the change in government in late July, with activity up 5% in the weeks following. While buying activity overall remains around 10% below last year's levels, this early uptick suggests that confidence may be beginning to return, and that the autumn market could be more active than the summer has been.*
If you’re selling in a more competitive area, working with an agent who understands local demand and can position your home accurately will make a meaningful difference to both your sale price and your timeline. See what your home is worth with an expert valuation today.
For buyers
For buyers, this is a market that rewards patience and preparation. The number of homes available means you have more options than at almost any point in recent memory, and sellers who are motivated to move are pricing accordingly. The combination of more choice and more realistic pricing creates opportunity for those who are ready to act.
On mortgages, the average two-year fixed rate has edged up to 5.09%, from 4.95% the previous month, as global uncertainty has kept lenders cautious.* That said, the mortgage market remains competitive, with lenders actively seeking to attract borrowers. There are also early indications that rates could ease in the coming weeks as lenders reassess the buffers they have built in.*
Preparation here is key, speaking to a mortgage advisor now and before you find the right property will put you in the strongest possible position to find real value in a market skewed towards buyers.
For landlords
The rental market continues to move in landlords' favour. Average UK rents reached £1,369 per month in July, rising 4.3% over the past year, which is the fastest pace of annual growth since September 2024.^
Outside London, rents averaged £1,170 per month which is up 3.4% year-on-year. In the capital, the market continues to grow with average rents climbing to £2,207 in July, approaching the peak of £2,218 recorded in October 2025.^
Renter affordability has improved slightly, with tenants spending an average of 32.4% of their income on rent in July, down from 32.7% in June.^ This marginal improvement suggests that demand remains robust without becoming unsustainable, a healthy signal for landlords looking at the medium-term outlook for their portfolios.
The current sales market also presents a strategic opportunity for landlords considering expanding their portfolios. With asking prices adjusted downward and high housing stock levels, buying conditions are more favourable than they have been for some time. For investors with the financial flexibility to act, this could be a well-timed moment to add to their holdings before buyer demand is expected to pick up later in the autumn.
Looking ahead
The autumn market is shaping up to be an interesting one. Sellers who price realistically, buyers who come prepared and landlords who keep a close eye on both the sales and rental markets will be best placed to make the most of what comes next. Whatever your position in the market, the right local advice remains the most valuable tool at your disposal. Your local agent is here to help you make sense of the numbers and take your next step with confidence.
