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UK house prices record zero growth as mortgage rates hit 6% for FIRST TIME in three years ahead of Budget

From the Newshound archive · first published 5 October 2026 · last updated 8 October 2026.

For Sale boards outside terraced houses like those seeing sluggish demand as UK house prices flatlined in September amid soaring mortgage rates.
For Sale boards outside terraced houses like those seeing sluggish demand as UK house prices flatlined in September amid soaring mortgage rates.
The UK property market's stall, with house prices unchanged for a second straight month in September as five-year fixed mortgage rates crossed 6% for the first time in three years.
The UK property market's stall, with house prices unchanged for a second straight month in September as five-year fixed mortgage rates crossed 6% for the first time in three years.

Britain's housing market has ground to a halt, with the average home worth £298,441 — unchanged from a year ago and virtually identical to August's figure — as buyers sit on their hands before Andy Burnham's October 28 Budget. Five-year fixed mortgage rates broke through 6% on Monday for the first time in three years, piling pressure on anyone whose fixed deal is ending or hoping to buy. The Royal Institution of Chartered Surveyors warned the market may face a longer period of subdued activity, while the Lloyds index showed economists' predictions of even modest 0.1% growth were missed entirely.

Burnham has previously championed a 'land value tax' that would scrap stamp duty in favour of a yearly charge on homeowners, deepening anxiety among prospective buyers.

MoreCity A.M.Interest rate fears dampen UK house buying demandLBC‘Fresh headwind’ for housing market as buyers become more cautiousFinancial TimesHigher mortgage rates inflict ‘pain’ on UK housing marketDaily MailHouse prices at a standstill as buyers fear more property tax hikesThe TimesUK house prices remain flat amid concern about inflationGB NewsUK house prices record ZERO growth as 'dark clouds gather' over property market
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