Quick answer
UK house prices stalled in September 2026. Nationwide reported a 0.2% fall in the month and annual growth halving to 0.8%, the weakest since December 2025. The Lloyds index, formerly the Halifax index, showed prices unchanged on the month and on the year at an average of £298,441. Surveyors are more downbeat: the RICS survey for September showed falling buyer demand and agreed sales. If you are refurbishing to sell, your profit needs to come from the work you do rather than from rising prices, and your plan should allow for a longer sale period. Updated 19 October: Rightmove's October figures show asking prices up 1.0% on the month but down 0.1% on the year, with sales agreed 8% lower than a year earlier as mortgage rates rise.
What the latest figures show
Three monthly measures, published in the first half of October, tell a similar story.
- Nationwide (1 October): prices fell 0.2% in September after a 0.2% rise in August. Annual growth halved from 1.6% to 0.8%, and the average price was £274,251. Chief economist Robert Gardner called it "the weakest rate of growth since December 2025". Source: Nationwide House Price Index.
- Lloyds (7 October): prices were unchanged in September (0.0%) after a 0.3% fall in August, with annual growth also at 0.0% and an average price of £298,441. The index was called the Halifax House Price Index until July 2026. Source: Lloyds House Price Index.
- RICS (8 October): the net balance for new buyer enquiries fell to -22% from -18%, agreed sales to -18%, and the house price balance to -32%. New instructions turned positive at +6%, the first positive reading since mid-2025. Source: RICS UK Residential Market Survey.
RICS's Tarrant Parsons said "a renewed rise in interest rate expectations has created a fresh headwind for the housing market". Our report on the Bank Rate hold in September explains how those expectations reach mortgage pricing.
Update: are house prices going up or down in October?
Rightmove's October figures, published on 19 October, point the same way. As reported by The Intermediary:
- The average asking price of newly listed homes rose 1.0% (£3,575) in the month to £371,015, but was 0.1% lower than a year earlier.
- Sales agreed were 8% lower than a year earlier and buyer enquiries 9% lower, while new listings were up 3%. The number of homes for sale was the highest for the time of year since 2014.
- The average two-year fixed mortgage rate rose to 5.55%, from 5.29% a month earlier and 4.25% before February. Rightmove estimates that adds about £250 a month to a typical new mortgage.
- Asking prices fell 2.0% in the North East and 1.9% in Scotland on the month. London rose 2.5% after a 6% fall over July and August, but was down 1.7% on the year, with homes taking 78 days on average to find a buyer.
Rightmove's Colleen Babcock said "the rapid rise in mortgage rates is really beginning to hit buyers' budgets". More stock and fewer buyers is a market where well-presented, well-priced homes still sell, but sales take longer. For a refurbish and sell project, that is another reason to build a longer marketing period into the bridge term.
Where prices are holding and where they are not
The national averages hide wide gaps. In Nationwide's figures for the third quarter, Northern Ireland led with annual growth of 5.9%, the North West was up 3.9% and Scotland 3.3%. East Anglia was the weakest region at -0.7%, with the East Midlands at -0.5% and the South West at -0.3%. London was up just 0.4%.
The official UK House Price Index for July, published on 16 September, adds a split by property type. Across the UK, semi-detached homes were up 2.9% on a year earlier and terraced homes 2.5%, but flats and maisonettes were down 2.4%. London prices were 3.3% lower than a year before. The August figures are due on 21 October.
For a refurbish and sell project, the local market and the type of property matter more than any headline figure. A three-bed terrace in the North West and a flat in outer London are in very different markets right now.
Why this matters for a bridge repaid by sale
A fix and flip loan is usually repaid from the sale of the finished property. Lenders look at the expected value after works, and when prices are flat, that figure needs to be supported by the improvement itself and by local sold prices, not by an assumption that the market will rise.
The RICS figures point to the other risk: time. With fewer buyers enquiring and fewer sales agreed, it may take longer to find a buyer and get to completion. A bridge with a 12 month term has less room for a slow sale if the works run late too. Our guides on bridging exit strategies and extending a bridging loan are worth reading before you commit.
How to plan a refurb in a flat market
- Base the end value on sold prices. Use recent completed sales for similar finished homes nearby, not asking prices. See how lenders value property for bridging.
- Buy well. In a flat market, the margin is made on the purchase. Auction lots and motivated sellers can help; our September auction report shows more stock and lower sale rates.
- Match the finance to the works. Cosmetic projects suit light refurbishment finance. Structural work, extensions or conversions need heavy refurbishment finance. Our guide to light vs heavy refurbishment explains where the line falls.
- Choose a term with slack. Allow for the works, the marketing period and conveyancing, then add a margin.
- Have a plan B. If the sale stalls, could you let the property and refinance? A bridge-to-let arrangement agrees that option at the start.
Our calculators help you test the numbers at a lower sale price and a longer term.
The outlook
Not every signal is negative. Nationwide's Robert Gardner said "underlying affordability is improving, as house price growth has been well below earnings growth for some time", and Lloyds reported that new enquiries from prospective buyers were at their highest since February. RICS respondents expect prices to be broadly flat over the next 12 months. The Autumn Budget on 28 October and the rate decision on 5 November could both shift sentiment, so plan on today's values. We search the market across refurbishment finance lenders and approach those whose terms suit your project.
Common questions
Are UK house prices falling?
Broadly flat. Nationwide reported a 0.2% fall in September 2026 and annual growth of 0.8%. The Lloyds index showed no change on the month or the year. Rightmove's October asking prices were 0.1% lower than a year earlier. Some regions are still rising while others are falling.
Is the Halifax house price index still published?
Yes, under a new name. It became the Lloyds House Price Index in July 2026, using the same method.
Should I still do a refurbish and sell project?
It can still work if you buy well and the value comes from the improvement. Base the end value on local sold prices and allow extra time to sell.
What if my property does not sell before the bridge ends?
Options include extending the bridge, refinancing onto a buy-to-let mortgage, or reducing the asking price. Talk to the lender early rather than near the end of the term.
This article reports news and published figures as at 19 October 2026. It is for general information only and is not legal, tax or financial advice. Bridge & Build Finance is a commercial finance brokerage service, not a lender. Finance is subject to status, lender criteria, valuation, underwriting and approval.
