House prices increase after months of decline as mortgages become cheaper

After dropping by over 2.5% or nearly £10,000 during the summer months from May to August, Rightmove reported a slight rebound of 0.4%(+£1,517) in the average UK property price in September. Meanwhile, the average cost of a home in London increased by 1.2% last month and now stands at slightly over £675,000.

Rise in sales despite speculation of new property tax

There is widespread speculation that the government will announce a new property tax on the sale of homes valued at over £500,000. If this new tax comes into effect, it will replace the Stamp Duty Land Tax (SDLT) that buyers currently pay and transfer the tax onto sellers. However, despite these rumours, Rightmove reported a 4% increase in the number of sales being agreed compared to last September.

Buyer demand remains strong as supply grows

As affordability improved owing to consecutive price corrections over the past few months, sellers also priced their properties sensibly to boost sales. According to Zoopla’s latest report, the average estate agent now has 36 properties for sale, which is 20% more than the stock levels of 2023. This is because there are almost 10% more homes for sale than there were last year.

Bank of England holds base rate as mortgage rates reduce

After five consecutive rate cuts since August 2024, the Bank of England (BoE) held its base rate at 4% in September to counter inflation and rising food prices. The current inflation level at 3.8% is higher than the BoE’s target rate of 2%, with the prices of basic food items growing by 5.1%.

According to Rightmove’s Mortgage Tracker, the average two-year fixed mortgage rate has decreased from 5.03% to 4.52%, resulting in a monthly repayment savings of nearly £100 for the average homebuyer.

Fingers crossed for the Autumn Budget

Scheduled for November 26, economists are expecting the Autumn Budget to announce landmark changes to tax laws to offset the government borrowing, which hit a five-year high of £18 billion in August. With 59% of homes in London valued at over £500,000, sellers are being cautious, as the number of homes for sale valued at over £1,000,000 has dropped by 9%, while those valued at over £500,000 have decreased by 7%.

Directors meet with investors in Asia and the Middle East

Our MD, Anita Mehra and Director, Marc Von Grundherr, are currently touring South East Asia, with upcoming visits to Malaysia, Indonesia, Singapore and India. Investors in these countries planning to purchase a property in London or Dubai will get a chance to consult with our top management, who possess decades of industry experience.

New phase launch at White City Living across Asia

Following the successful new phase launch of White City Living’s Cascades Three in Hong Kong, our teams in Kuala Lumpur, Jakarta and Singapore will host similar events to unveil new apartments at this exciting Zone 2 development by Berkeley Group.

As part of an ambitious £8bn regeneration plan in West London’s vibrant White City neighbourhood, our on-site branch at the development is experiencing high rental demand, with up to 32 applicants per rental listing. Excellent Tube connectivity and world-class lifestyle amenities are some of the other reasons boosting demand.

Better supply eases rental inflation

The Office for National Statistics (ONS) reported moderate growth in average rents of 5.7% in the 12 months to August 2025. Although rental inflation in the capital is on par with the UK, the average rent in London far outpaces the national average by more than 67% as it crossed £2,250 last month. While rental supply across the South West and East Midlands has increased by over 30%, London continues to see higher demand, with just a 6% increase in stock from last year.

Renters’ Rights Bill moves closer to receiving Royal Assent

The much-talked-about Renters’ Rights Bill, which will introduce landmark changes to the private rental sector (PRS), is set to return to the House of Lords in October for the final round of discussions before it receives Royal Assent from the King and becomes law. The law will put an end to Section 21 notices and fixed-term tenancies, making the rules tighter for landlords.

You can find a comprehensive explanation of the Renters’ Rights Bill in our detailed blog and guide, which will help you stay updated about the changes. We also hosted an exclusive webinar to help you understand how Benham and Reeves can help you navigate through the law as an overseas London landlord.

Our 21 London branches, supported by 14 international offices and multiple country desks, make the entire lettings and property management experience easy and hassle-free.