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\t\tLondon house prices slumped in 2025\t<\/p>\n\t\t\tWednesday 17 December 2025 11:59 am
\n\t\t\t\t\t\u00a0|\u00a0\u00a0Updated:\u00a0<\/p>\n
\t\t\tWednesday 17 December 2025 12:00 pm\n\t<\/p>\n
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\t\tLondon house prices slumped in 2025\t<\/p>\n
London house prices have fallen by more than two per cent year on year, as Budget chaos took its toll on a volatile housing market.<\/p>\n
The average house price in London for October was \u00a3547,000<\/a>, down 2.4 per cent from the previous year, according to the Office for National Statistics (ONS).<\/p>\n Property experts said this reveals the vulnerability of the capital\u2019s housing market, following months of uncertainty in the lead up to the Budget<\/a>.\u00a0<\/p>\n Amy Reynolds, sales head at Richmond agency Antony Roberts, said: \u201cIn London, where affordability and sentiment are highly rate-sensitive, even small shifts in expectations can have an outsized impact on activity.\u201d<\/p>\n Richard Donnell, executive director of property website Zoopla, said: \u201cSlower house price inflation reflects higher stamp duty costs for home buyers and the impact of Budget uncertainty on the market with annual price falls across London.\u201d<\/p>\n \t\tHousing market weathers Budget storm<\/p>\n Across the UK, however, house prices have stabilised as the market returns to normal after the Budget speculation over the autumn.<\/p>\n Average house prices across the UK increased by 1.7 per cent year on year to \u00a3270,000 in October 2025, down slightly from the two per cent annual growth rate to September.<\/p>\n Property experts expect a flurry of activity after Christmas, with the normal \u2018Boxing Day bounce\u2019 boosted by post-Budget relief for buyers and a more certain policy environment.\u00a0<\/p>\n Annual house price inflation was highest in the North East of England, with a five per cent spike in prices to \u00a3163,000.<\/p>\n \t\t\t\t\tRead more<\/p>\n \t\t\tLondon house prices record annual fall for first time in 18 months<\/a><\/p>\n In England as a whole, house prices were up one per cent year on year in October, to \u00a3292,000.<\/p>\n Property experts said the figures are proof of a resilient housing market, which has been affected by swirling rumours about stamp duty<\/a> overhaul in the run-up to the Budget and uncertainty ahead of the incoming Renters Rights Act.\u00a0<\/p>\n The Budget saw Rachel Reeves announce a mansion tax<\/a> surcharge on houses above \u00a32m in value, while the Chancellor stopped short of more dramatic reforms to the council tax system.<\/p>\n Interest rate cuts to boost confidence<\/p>\n