The Bank of England maintained its base rate at 4.00%, while the average five-year fixed mortgage held near 5.0%, signalling a stabilising borrowing environment after recent cuts. 

London’s House Price Index showed a modest +0.8% annual rise to an average of £561,000, with transaction volumes (April data) still subdued at 1,556. Meanwhile, asking prices edged up 1.2% month-on-month but remained 1.1% below last year, suggesting cautious seller sentiment.

Rental growth stayed firm at +6.3% year-on-year, sustaining investor yields even as consumer confidence hovered at –17. Overall, September data indicate a balanced phase in London’s property market.

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Disclaimer

This Market Watch is for informational purposes only and does not constitute financial or investment advice. Always seek independent professional guidance before making property decisions.

Key Market Signals

Indicator

Status

Direction

BoE Base Rate

4.00 % (unchanged since Aug 2025)

↔️

5-Year Fixed Mortgage

5.00 % (Sep 2025 snapshot)

↔️

London Price Index (HPI)

+0.80 % YoY (Jun 2025)

⬆️

Transaction Volume

1,556 (Apr 2025, provisional)

↔️

Rental Growth

+6.30 % YoY (to Jul 2025)

⬆️

Asking Price

+1.20 % MoM / −1.10 % YoY (Sep 2025)

↔️

Consumer Confidence

−17 (Aug 2025), +2 pts MoM

⬆️

How These Numbers Affect You

A) Financing & Mortgage

Is getting a mortgage easier or more competitive now? Will my monthly payment drop?

The combination of an unchanged base rate and a steady five-year fixed average suggests the mortgage market is stabilising after earlier volatility. Lenders appear to be keeping rates competitive but cautious.

First-Time Buyers: indicates borrowing conditions are steady, allowing better planning of monthly budgets.

Investors: suggests consistent financing costs that help maintain predictable yields on leveraged assets.

If I already have a mortgage, is now a good time to remortgage or wait?

Current fixed deals are broadly aligned with the three-month average, indicating limited near-term movement. Stability rather than rapid decline defines this phase.