{"id":2196,"date":"2026-05-12T11:41:04","date_gmt":"2026-05-12T10:41:04","guid":{"rendered":"https:\/\/www.benhams.com\/press-release\/?p=2196"},"modified":"2026-05-12T11:41:04","modified_gmt":"2026-05-12T10:41:04","slug":"house-prices-fall-after-three-consecutive-periods-of-growth","status":"publish","type":"post","link":"https:\/\/www.benhams.com\/press-release\/london-property-market\/house-prices-fall-after-three-consecutive-periods-of-growth\/","title":{"rendered":"House prices fall after three consecutive periods of growth"},"content":{"rendered":"

To view the full Market Index Q3 2025 click here<\/a>.<\/p>\n

\"MarketThe latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market lost momentum during the fourth quarter of 2025, with house prices seeing a slight fall following three consecutive quarters of positive growth.<\/p>\n

The Benham and Reeves Market Index Review<\/strong><\/p>\n

The Benham and Reeves Property Market Index Review* is a quarterly accumulation of house price data from the top four existing indices, providing the most comprehensive view of UK and London house price performance. <\/p>\n

It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.<\/p>\n

It also highlights how the gap has changed between buyers and seller expectation, as well as asking price and actual sales price, on a quarterly basis across London and the UK.<\/p>\n

Current property values<\/strong><\/p>\n

Based on a geometric mean of all four existing data sets, the index from Benham and Reeves shows the average UK house price sat at \u00a3304,249 in Q4 of this year. <\/p>\n

This marked a -0.5% quarterly decrease, following three consecutive quarters of positive growth. It also marks the first quarterly drop since Q4 2023 (-0.8%).<\/p>\n

However, the long-term view also remains one of positivity, with current house prices remaining 1% higher when compared to the previous year, Q4 2024. <\/p>\n

In London, the average house price in Q4 2025 sat at \u00a3584,684. This marked a -0.4% decline for the quarter, and the capital\u2019s second consecutive quarterly drop following Q3\u2019s decrease of -1%. However, the annual picture demonstrates that the London market has stood firm in the long-term, with no discernible price change recorded between Q4 2024 and Q4 2025.<\/p>\n

Market Gap Between Mortgage Approval Price (Buyers) & Asking Price (Sellers)<\/strong><\/p>\n

In Q4 2025, the market gap between the average mortgage approved price of a buyer (\u00a3285,269) and the asking price expectation of a seller (\u00a3364,757) sat at 27.9%. <\/p>\n

This marked a drop on the previous quarter when this gap sat at 30.2%, which was itself a reduction on the Q2 gap of 33.1%. This continued narrowing of the gap is largely driven by a decrease in the average asking price and a more realistic approach to pricing on the side of the nation\u2019s home sellers. <\/p>\n

In London, the gap between mortgage approved house prices (\u00a3538,181) and seller asking prices (\u00a3671,832) was 24.8%. As with the wider national picture, this marked a second consecutive quarterly reduction, again driven by a drop in asking prices as sellers looked to combat quieter market conditions. <\/p>\n

Market Gap Between Asking Price (Sellers) & Sold Price (Buyers)<\/strong><\/p>\n

The latest index by Benham and Reeves shows that the difference between the average UK asking price and the average sold price has also continued to fall. <\/p>\n

Across the UK, the average sold price in Q4 2025 stood at \u00a3270,664, -25.8% below the average asking price of \u00a3364,757. This is by far the narrowest gap since Benham and Reeves began its index in 2017, driven by a significant quarterly drop in asking prices while sold prices remained steady. This suggests more realistic asking prices on the side of sellers, but continued demand from buyers. <\/p>\n

In London, the difference between asking price and sold price sits at -17.7%, a widening of the gap compared to the previous quarter when it measured -16.2%. <\/p>\n

Director of Benham and Reeves, Marc von Grundherr, commented:<\/strong><\/p>\n

\u201cThe final quarter of 2025 has seen the market pause for breath following a sustained period of positive growth, with a marginal quarterly reduction in house prices suggesting that momentum has eased as the year drew to a close. However, this is by no means a sign of market weakness. On the contrary, the annual picture remains one of stability, and what we\u2019re seeing is a natural correction as both buyers and sellers adjust to the current landscape.<\/p>\n

In fact, one of the most notable trends is the continued narrowing of the gap between buyer affordability and seller expectation. This has been driven largely by sellers adopting a more realistic approach to pricing, which is helping to facilitate transactions even in a cooler market environment.<\/p>\n

At the same time, the gap between asking and sold prices has reached its narrowest point on record, reinforcing the fact that homes priced correctly are still attracting strong levels of demand and achieving successful sales.<\/p>\n

London, as ever, has been quicker to respond to shifting market conditions, with values softening for a second consecutive quarter. But this should be viewed as a period of adjustment rather than decline, with the capital typically leading the way when it comes to both market corrections and subsequent recovery.<\/p>\n

As we move into 2026, a more aligned marketplace should help support transaction levels, and while we may not see rapid price growth in the short term, the fundamentals remain firmly in place for steady, sustainable performance.\u201d<\/p>\n

UK<\/strong><\/p>\n\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
UK – Table shows quarterly and annual change in average house price <\/th>\n<\/tr>\n
Year<\/th>\nQuarter<\/th>\nLand Registry<\/th>\nHalifax \/ Nationwide<\/th>\nRightmove<\/th>\nBenhams & Reeves
(Aggregated)\n <\/th>\n		Q Change<\/th>\nAnnual Change<\/th>\n<\/tr>\n<\/thead>\n

<\/p>\n

2024<\/td>\nQ1<\/td>\n\u00a3255,228<\/td>\n\u00a3274,526<\/td>\n\u00a3363,552<\/td>\n\u00a3294,234<\/td>\n0.2%<\/td>\n0.0%<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3258,206<\/td>\n\u00a3276,238<\/td>\n\u00a3374,186<\/td>\n\u00a3298,845<\/td>\n1.6%<\/td>\n0.8%<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3264,102<\/td>\n\u00a3278,890<\/td>\n\u00a3370,672<\/td>\n\u00a3301,114<\/td>\n0.8%<\/td>\n1.7%<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3264,585<\/td>\n\u00a3281,746<\/td>\n\u00a3366,217<\/td>\n\u00a3301,107<\/td>\n0.0%<\/td>\n2.5%<\/td>\n<\/tr>\n

<\/p>\n

2025<\/td>\nQ1<\/td>\n\u00a3265,904<\/td>\n\u00a3283,655<\/td>\n\u00a3368,677<\/td>\n\u00a3302,961<\/td>\n0.6%<\/td>\n3%<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3264,148<\/td>\n\u00a3284,307<\/td>\n\u00a3378,312<\/td>\n\u00a3305,137<\/td>\n0.7%<\/td>\n2.1%<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3270,709<\/td>\n\u00a3284,911<\/td>\n\u00a3370,896<\/td>\n\u00a3305,836<\/td>\n0.2%<\/td>\n1.6%<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3270,664<\/td>\n\u00a3285,269<\/td>\n\u00a3364,757<\/td>\n\u00a3304,249<\/td>\n-0.5%<\/td>\n1%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n

<\/p>\n

\n\n\n\n\n\n\n\n
UK – Table shows the market gap between mortgage approved house prices and asking prices\n <\/th>\n<\/tr>\n
Year<\/th>\nQuarter<\/th>\nMortgage Approvals Price<\/th>\nDifference<\/th>\nAsking Price<\/th>\n<\/tr>\n<\/thead>\n
2024<\/td>\nQ1<\/td>\n\u00a3274,526<\/td>\n32.4%<\/td>\n\u00a3363,552<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3276,238<\/td>\n35.5%<\/td>\n\u00a3374,186<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3278,890<\/td>\n32.9%<\/td>\n\u00a3370,672<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3281,746<\/td>\n30%<\/td>\n\u00a3366,217<\/td>\n<\/tr>\n

<\/p>\n

2025<\/td>\nQ1<\/td>\n\u00a3283,655<\/td>\n30%<\/td>\n\u00a3368,677<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3284,307<\/td>\n33.1%<\/td>\n\u00a3378,312<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3284,911<\/td>\n30.2%<\/td>\n\u00a3370,896<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3285,269<\/td>\n27.9%<\/td>\n\u00a3364,757<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n

<\/p>\n

\n\n\n\n\n\n\n\n
UK – Table shows the market gap between asking prices and sold prices<\/th>\n<\/tr>\n
Year<\/th>\nQuarter<\/th>\nAsking Price<\/th>\nDifference<\/th>\nSold Price <\/th>\n<\/tr>\n<\/thead>\n
2024<\/td>\nQ1<\/td>\n\u00a3363,552<\/td>\n-29.8%<\/td>\n\u00a3255,228<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3374,186<\/td>\n-31%<\/td>\n\u00a3258,206<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3370,672<\/td>\n-28.8%<\/td>\n\u00a3264,102<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3366,217<\/td>\n-27.8%<\/td>\n\u00a3264,585<\/td>\n<\/tr>\n

<\/p>\n

2025<\/td>\nQ1<\/td>\n\u00a3368,677<\/td>\n-27.9%<\/td>\n\u00a3265,904<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3378,312<\/td>\n-30.2%<\/td>\n\u00a3264,148<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3370,896<\/td>\n-27%<\/td>\n\u00a3270,709<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3364,757<\/td>\n-25.8%<\/td>\n\u00a3270,664<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

LONDON<\/strong><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
London – Table shows quarterly and annual change in average house price\n <\/th>\n<\/tr>\n
\n Year\n <\/th>\n\n Quarter\n <\/th>\n\n Land Registry\n <\/th>\n\n Halifax \/ Nationwide\n <\/th>\n\n Rightmove\n <\/th>\n\n Benhams and Reeves
(Aggregated)\n <\/th>\n		\n Q Change\n <\/th>\n\n Annual Change\n <\/th>\n<\/tr>\n<\/thead>\n

<\/p>\n

\n 2024\n <\/td>\nQ1<\/td>\n\u00a3548,256<\/td>\n\u00a3519,505<\/td>\n\u00a3678,057<\/td>\n\u00a3578,025<\/td>\n0.2%<\/td>\n-0.3%<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3552,960<\/td>\n\u00a3525,248<\/td>\n\u00a3696,130<\/td>\n\u00a3586,925<\/td>\n1.5%<\/td>\n0.8%<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3563,928<\/td>\n\u00a3524,685<\/td>\n\u00a3684,210<\/td>\n\u00a3587,179<\/td>\n0.0%<\/td>\n1.1%<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3559,236<\/td>\n\u00a3525,535<\/td>\n\u00a3679,746<\/td>\n\u00a3584,585<\/td>\n-0.4%<\/td>\n1.4%<\/td>\n<\/tr>\n

<\/p>\n

\n 2025\n <\/td>\nQ1<\/td>\n\u00a3559,878<\/td>\n\u00a3529,369<\/td>\n\u00a3686,020<\/td>\n\u00a3588,026<\/td>\n0.6%<\/td>\n1.7%<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3566,173<\/td>\n\u00a3527,694<\/td>\n\u00a3698,863<\/td>\n\u00a3593,255<\/td>\n0.9%<\/td>\n1.1%<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3566,310<\/td>\n\u00a3529,372<\/td>\n\u00a3675,543<\/td>\n\u00a3587,250<\/td>\n-1%<\/td>\n0.0%<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3552,809<\/td>\n\u00a3538,181<\/td>\n\u00a3671,832<\/td>\n\u00a3584,684<\/td>\n-0.4%<\/td>\n0.0%<\/td>\n<\/tr>\n<\/table>\n<\/div>\n

<\/p>\n

\n\n\n\n\n\n

<\/p>\n

\n\n\n\n\n\n\n\n
\n London – Table shows the market gap between mortgage approved house prices and asking prices\n <\/th>\n<\/tr>\n
Year<\/th>\nQuarter<\/th>\nMortgage Approvals Price<\/th>\nDifference<\/th>\nAsking Price<\/th>\n<\/tr>\n<\/thead>\n
2024<\/td>\nQ1<\/td>\n\u00a3519,505<\/td>\n30.5%<\/td>\n\u00a3678,057<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3525,248<\/td>\n32.5%<\/td>\n\u00a3696,130<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3524,685<\/td>\n30.4%<\/td>\n\u00a3684,210<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3525,535<\/td>\n29.3%<\/td>\n\u00a3679,746<\/td>\n<\/tr>\n

<\/p>\n

2025<\/td>\nQ1<\/td>\n\u00a3529,369<\/td>\n29.6%<\/td>\n\u00a3686,020<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3527,694<\/td>\n32.4%<\/td>\n\u00a3698,863<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3529,372<\/td>\n27.6%<\/td>\n\u00a3675,543<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3538,181<\/td>\n24.8%<\/td>\n\u00a3671,832<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
\n\n\n\n\n\n

<\/p>\n

\n\n\n\n\n\n\n\n
\n London – Table shows the market gap between asking prices and sold prices\n <\/th>\n<\/tr>\n
Year<\/th>\nQuarter<\/th>\nAsking Price<\/th>\nDifference<\/th>\nSold Price<\/th>\n<\/tr>\n<\/thead>\n
2024<\/td>\nQ1<\/td>\n\u00a3678,057<\/td>\n-19.1%<\/td>\n\u00a3548,256<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3696,130<\/td>\n-20.6%<\/td>\n\u00a3552,960<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3684,210<\/td>\n-17.6%<\/td>\n\u00a3563,928<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3679,746<\/td>\n-17.7%<\/td>\n\u00a3559,236<\/td>\n<\/tr>\n

<\/p>\n

2025<\/td>\nQ1<\/td>\n\u00a3686,020<\/td>\n-18.4%<\/td>\n\u00a3559,878<\/td>\n<\/tr>\n
Q2<\/td>\n\u00a3698,863<\/td>\n-19%<\/td>\n\u00a3566,173<\/td>\n<\/tr>\n
Q3<\/td>\n\u00a3675,543<\/td>\n-16.2%<\/td>\n\u00a3566,310<\/td>\n<\/tr>\n
Q4<\/td>\n\u00a3671,832<\/td>\n-17.7%<\/td>\n\u00a3552,809<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
The Benham and Reeves Property Market Index Review gauges the health of the UK and London property markets based on data from the top four existing indices. It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.
\nIt also highlights how the gap has changed between buyers and seller expectation, as well as asking price and actual sales price, on a quarterly basis across London and the UK.
\nSources: Land Registry, Halifax HPI, Nationwide HPI, Rightmove HPI<\/div>\n","protected":false},"excerpt":{"rendered":"

To view the full Market Index Q3 2025 click here. The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market lost momentum during the fourth quarter of 2025, with house prices seeing a slight fall following three consecutive quarters of positive growth. The Benham … <\/p>\n

Continue reading “House prices fall after three consecutive periods of growth”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":2198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[463],"tags":[],"class_list":["post-2196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-london-property-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/2196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/comments?post=2196"}],"version-history":[{"count":1,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/2196\/revisions"}],"predecessor-version":[{"id":2199,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/posts\/2196\/revisions\/2199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media\/2198"}],"wp:attachment":[{"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/media?parent=2196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/categories?post=2196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benhams.com\/press-release\/wp-json\/wp\/v2\/tags?post=2196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}