{
  "id": 12569893,
  "title": "House prices fall faster in London as property market stays ‘subdued’",
  "url": "https://urgent.news/2026/10/07/house-prices-fall-faster-in-london-as-property-market-stays-subdued",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-07T06:28:33.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/house-prices-fall-faster-in-london-as-property-market-stays-subdued/"
  },
  "original_language": "en",
  "account": "In London, house prices dropped more sharply last month, continuing the struggle of the property market due to the Iran war, according to the Lloyds house price index. The average house price in the capital fell by 2.2% to £531,548 in the year to September, a more significant decline than the 1.5% drop in August. Nationwide, house prices remained stable in September and year-on-year, showing an improvement from last month's 0.3% decrease. The downturn in London's property market was mirrored in the South East, where prices fell by 2.1% year on year to £380,829. Eastern England saw an average house value decline of 1.6% to £330,151. Despite the overall subdued property market, Andrew Asaam, mortgages director at Lloyds, stated that London and southern England's markets are particularly affected by rising mortgage rates and stamp duty. The UK's mortgage rates surged following the US and Israel's invasion of Iran in February, with the average five-year mortgage rate surpassing the six percent mark for the first time in three years. Mortgage rate hikes by major lenders, including Barclays, HSBC, and Lloyds, were prompted by the global increase in borrowing costs. Asaam emphasized that while the market has been relatively subdued, property prices have remained resilient amid higher mortgage rates driven by shifts in expectations about Base Rate. Economic data suggests household spending remains robust despite rising energy and other costs due to the Middle East conflict. Interest rates are expected to rise multiple times by summer next year, according to money markets, with most economists anticipating a hike this month. Housing market expert Jason Tebb noted a cautious sentiment among buyers and sellers returning from holidays, eager to finalize their moves before the year ends. The upcoming budget, scheduled later in the month, is expected to provide crucial support for the housing market and the broader economy. Andy Burnham, a prominent figure in the housing sector, unveiled a new equity loan scheme for first-time buyers, which is anticipated to invigorate the UK's stagnant housing market, though economists warn that struggling housebuilders still require assistance due to rising costs and bureaucratic hurdles.",
  "summary": "House prices in London fell at a faster rate last month, as homeowners in the capital continue to bear the brunt of the property market slowdown caused by the Iran war. The average house price in London fell by 2.2 per cent to £531,548 in the year to September, according to the Lloyds house price [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}