Buyer demand weakened again in September, and London is feeling it more
Surveyors reported fewer buyers and more homes coming to market. The official figures show London prices down 3.3% over the year, with flats down 6.6%.
Written with AI from official figures, and checked number by number against the source data. How we make these articles
54,918 mortgages approved for house purchase in August, the lowest month of 2026 so far
Surveyors reported another fall in buyer demand during September, and the official figures for London show prices still drifting down. For anyone selling, the practical effect is a slower market with fewer buyers in it.
What the surveyors reported
The RICS residential market survey, published on 6 October, asks chartered surveyors what they are seeing. Each figure is a net balance: the share reporting a rise minus the share reporting a fall. It shows direction rather than size, and it reflects opinion rather than completed sales.
| September 2026 | Net balance | Month before |
|---|---|---|
| New buyer enquiries | −22% | −18% |
| Agreed sales | −18% | −16% |
| Sales expected over the next three months | −6% | −3% |
| New instructions to sell | +6% | |
| House prices | −32% | −28% |
| Prices expected over the next three months | −24% |
Every measure of demand weakened on the month, while more sellers came to market. Buyer enquiries are still well above the low of −41% recorded six months ago, so this is a setback rather than a collapse. Surveyors also reported that sentiment in London was notably weaker than the national reading.
London prices are falling faster than the rest
The official index tells the same story with harder numbers. The average London home sold for £550,037 in July, down 3.3% on a year earlier and 0.1% on the month. Flats fell furthest, down 6.6% over the year to £424,013. Terraced houses barely moved, down 0.2% at £642,452.
Over ten years the gap is stark. The average London flat is worth 2.3% less than in July 2016, while terraced houses are up 19%.
Average prices from the UK House Price Index, which adjusts for the mix of homes sold each month. Source: HM Land Registry UK House Price Index.
Show the figures
| Period | Terraced houses | Flats |
|---|---|---|
| Jul 2026 | £642,452 | £424,013 |
| Jun 2026 | £639,482 | £427,048 |
| May 2026 | £634,520 | £426,149 |
| Apr 2026 | £638,086 | £430,838 |
| Mar 2026 | £637,112 | £423,931 |
| Feb 2026 | £630,064 | £426,470 |
| Jan 2026 | £642,471 | £432,231 |
| Dec 2025 | £633,598 | £428,243 |
| Nov 2025 | £643,139 | £438,401 |
| Oct 2025 | £636,831 | £439,831 |
| Sep 2025 | £646,458 | £448,962 |
| Aug 2025 | £649,397 | £450,230 |
| Jul 2025 | £643,512 | £454,151 |
| Jun 2025 | £642,486 | £452,466 |
| May 2025 | £635,069 | £452,428 |
| Apr 2025 | £632,982 | £450,701 |
| Mar 2025 | £624,529 | £444,391 |
| Feb 2025 | £634,342 | £447,868 |
| Jan 2025 | £637,810 | £449,606 |
| Dec 2024 | £627,192 | £446,546 |
| Nov 2024 | £628,742 | £449,157 |
| Oct 2024 | £627,946 | £450,756 |
| Sep 2024 | £637,408 | £453,901 |
| Aug 2024 | £636,941 | £457,091 |
| Jul 2024 | £628,695 | £447,128 |
| Jun 2024 | £618,622 | £452,934 |
| May 2024 | £614,656 | £450,513 |
| Apr 2024 | £608,973 | £444,870 |
| Mar 2024 | £606,355 | £446,831 |
| Feb 2024 | £608,497 | £442,297 |
| Jan 2024 | £612,914 | £446,441 |
| Dec 2023 | £609,446 | £445,438 |
| Nov 2023 | £607,555 | £443,076 |
| Oct 2023 | £615,130 | £451,271 |
| Sep 2023 | £631,829 | £457,504 |
| Aug 2023 | £627,335 | £450,401 |
| Jul 2023 | £626,335 | £449,451 |
| Jun 2023 | £617,007 | £451,136 |
| May 2023 | £610,746 | £453,179 |
| Apr 2023 | £615,552 | £451,930 |
| Mar 2023 | £608,053 | £452,865 |
| Feb 2023 | £623,137 | £456,791 |
| Jan 2023 | £632,120 | £461,366 |
| Dec 2022 | £636,298 | £461,725 |
| Nov 2022 | £641,610 | £463,480 |
| Oct 2022 | £640,019 | £462,931 |
| Sep 2022 | £644,506 | £468,325 |
| Aug 2022 | £646,971 | £470,873 |
| Jul 2022 | £639,419 | £467,596 |
| Jun 2022 | £631,836 | £466,965 |
| May 2022 | £611,999 | £450,631 |
| Apr 2022 | £610,671 | £454,612 |
| Mar 2022 | £602,636 | £451,643 |
| Feb 2022 | £599,827 | £455,139 |
| Jan 2022 | £603,709 | £452,858 |
| Dec 2021 | £599,668 | £451,268 |
| Nov 2021 | £593,226 | £453,822 |
| Oct 2021 | £587,385 | £444,620 |
| Sep 2021 | £594,208 | £447,568 |
| Aug 2021 | £592,354 | £454,212 |
| Jul 2021 | £564,200 | £448,420 |
| Jun 2021 | £591,954 | £447,070 |
| May 2021 | £567,691 | £435,476 |
| Apr 2021 | £568,226 | £436,460 |
| Mar 2021 | £577,649 | £450,063 |
| Feb 2021 | £569,633 | £439,619 |
| Jan 2021 | £575,732 | £442,097 |
| Dec 2020 | £583,008 | £436,892 |
| Nov 2020 | £581,284 | £438,632 |
| Oct 2020 | £571,831 | £431,367 |
| Sep 2020 | £575,246 | £440,934 |
| Aug 2020 | £570,321 | £437,230 |
| Jul 2020 | £559,085 | £435,364 |
| Jun 2020 | £558,429 | £430,062 |
| May 2020 | £544,391 | £426,483 |
| Apr 2020 | £549,921 | £427,955 |
| Mar 2020 | £553,011 | £436,597 |
| Feb 2020 | £548,511 | £426,206 |
| Jan 2020 | £545,159 | £431,945 |
| Dec 2019 | £549,860 | £433,845 |
| Nov 2019 | £541,731 | £420,646 |
| Oct 2019 | £541,848 | £426,466 |
| Sep 2019 | £545,433 | £433,785 |
| Aug 2019 | £547,559 | £424,976 |
| Jul 2019 | £545,967 | £435,393 |
| Jun 2019 | £537,685 | £425,915 |
| May 2019 | £532,387 | £419,432 |
| Apr 2019 | £535,945 | £426,945 |
| Mar 2019 | £528,621 | £421,945 |
| Feb 2019 | £530,381 | £422,821 |
| Jan 2019 | £534,159 | £426,121 |
| Dec 2018 | £536,587 | £430,393 |
| Nov 2018 | £541,148 | £429,846 |
| Oct 2018 | £545,702 | £436,160 |
| Sep 2018 | £543,199 | £432,155 |
| Aug 2018 | £545,228 | £436,242 |
| Jul 2018 | £552,250 | £440,004 |
| Jun 2018 | £543,874 | £436,755 |
| May 2018 | £544,098 | £435,602 |
| Apr 2018 | £539,640 | £435,849 |
| Mar 2018 | £533,040 | £431,941 |
| Feb 2018 | £535,523 | £439,190 |
| Jan 2018 | £536,730 | £441,502 |
| Dec 2017 | £535,721 | £437,511 |
| Nov 2017 | £534,243 | £437,397 |
| Oct 2017 | £540,448 | £442,072 |
| Sep 2017 | £542,970 | £444,743 |
| Aug 2017 | £548,281 | £448,184 |
| Jul 2017 | £546,675 | £450,908 |
| Jun 2017 | £537,017 | £443,819 |
| May 2017 | £533,732 | £446,007 |
| Apr 2017 | £534,019 | £444,379 |
| Mar 2017 | £531,090 | £438,548 |
| Feb 2017 | £527,996 | £443,047 |
| Jan 2017 | £533,553 | £437,425 |
| Dec 2016 | £528,923 | £435,457 |
| Nov 2016 | £526,032 | £434,133 |
| Oct 2016 | £527,800 | £432,964 |
| Sep 2016 | £532,404 | £432,378 |
| Aug 2016 | £534,258 | £431,010 |
| Jul 2016 | £539,737 | £433,809 |
Why demand is softening
Mortgage pricing explains much of it. The average 2-year fixed rate at 75% of the property’s value reached 5.13% in September, up from 4.92% in August and 3.93% in January. Five-year fixes reached 4.98%. Bank Rate has not moved since 18 December 2025 and still sits at 3.75%, so the 2-year fix is now 1.38 percentage points above it. Lenders price fixed deals from what they expect rates to do, not from today’s Bank Rate.
Buyers respond to the monthly payment, and the effect shows up in lending. Lenders approved 54,918 mortgages for house purchase in August, the lowest month of 2026 so far. That is 15.5% below April’s 65,021 and well short of the 65,364 approved a year earlier.
Bank Rate shown at its level at the end of each month. Source: Bank of England.
Show the figures
| Period | 2-year fixed | 5-year fixed | Bank Rate |
|---|---|---|---|
| Sep 2026 | 5.13% | 4.98% | 3.75% |
| Aug 2026 | 4.92% | 4.78% | 3.75% |
| Jul 2026 | 4.79% | 4.58% | 3.75% |
| Jun 2026 | 4.8% | 4.62% | 3.75% |
| May 2026 | 4.91% | 4.77% | 3.75% |
| Apr 2026 | 5.14% | 4.96% | 3.75% |
| Mar 2026 | 4.45% | 4.42% | 3.75% |
| Feb 2026 | 3.97% | 4% | 3.75% |
| Jan 2026 | 3.93% | 3.94% | 3.75% |
| Dec 2025 | 3.97% | 3.99% | 3.75% |
| Nov 2025 | 4.06% | 4.06% | 4% |
| Oct 2025 | 4.2% | 4.17% | 4% |
| Sep 2025 | 4.19% | 4.16% | 4% |
| Aug 2025 | 4.1% | 4.11% | 4% |
| Jul 2025 | 4.21% | 4.15% | 4.25% |
| Jun 2025 | 4.28% | 4.26% | 4.25% |
| May 2025 | 4.18% | 4.19% | 4.25% |
| Apr 2025 | 4.42% | 4.29% | 4.5% |
| Mar 2025 | 4.54% | 4.32% | 4.5% |
| Feb 2025 | 4.65% | 4.38% | 4.5% |
| Jan 2025 | 4.63% | 4.37% | 4.75% |
| Dec 2024 | 4.6% | 4.37% | 4.75% |
| Nov 2024 | 4.53% | 4.29% | 4.75% |
| Oct 2024 | 4.4% | 4.06% | 5% |
| Sep 2024 | 4.58% | 4.09% | 5% |
| Aug 2024 | 4.8% | 4.33% | 5% |
| Jul 2024 | 4.99% | 4.49% | 5.25% |
| Jun 2024 | 5.16% | 4.64% | 5.25% |
| May 2024 | 5.19% | 4.66% | 5.25% |
| Apr 2024 | 4.98% | 4.51% | 5.25% |
| Mar 2024 | 4.96% | 4.53% | 5.25% |
| Feb 2024 | 4.76% | 4.41% | 5.25% |
| Jan 2024 | 4.71% | 4.43% | 5.25% |
| Dec 2023 | 5.03% | 4.68% | 5.25% |
| Nov 2023 | 5.28% | 4.89% | 5.25% |
| Oct 2023 | 5.6% | 5.02% | 5.25% |
| Sep 2023 | 5.91% | 5.24% | 5.25% |
| Aug 2023 | 6.18% | 5.53% | 5.25% |
| Jul 2023 | 6.22% | 5.71% | 5% |
| Jun 2023 | 5.49% | 4.95% | 5% |
| May 2023 | 4.72% | 4.28% | 4.5% |
| Apr 2023 | 4.6% | 4.16% | 4.25% |
| Mar 2023 | 4.74% | 4.26% | 4.25% |
| Feb 2023 | 4.79% | 4.36% | 4% |
| Jan 2023 | 5.14% | 4.66% | 3.5% |
| Dec 2022 | 5.43% | 5.05% | 3.5% |
| Nov 2022 | 5.98% | 5.5% | 3% |
| Oct 2022 | 5.99% | 5.61% | 2.25% |
| Sep 2022 | 4.17% | 3.97% | 2.25% |
| Aug 2022 | 3.6% | 3.61% | 1.75% |
| Jul 2022 | 3.48% | 3.43% | 1.25% |
| Jun 2022 | 2.87% | 2.9% | 1.25% |
| May 2022 | 2.63% | 2.62% | 1% |
| Apr 2022 | 2.35% | 2.35% | 0.75% |
| Mar 2022 | 2.14% | 2.11% | 0.75% |
| Feb 2022 | 1.78% | 1.79% | 0.5% |
| Jan 2022 | 1.64% | 1.63% | 0.25% |
| Dec 2021 | 1.57% | 1.59% | 0.25% |
| Nov 2021 | 1.53% | 1.52% | 0.1% |
| Oct 2021 | 1.29% | 1.3% | 0.1% |
| Sep 2021 | 1.2% | 1.28% | 0.1% |
| Aug 2021 | 1.23% | 1.39% | 0.1% |
| Jul 2021 | 1.29% | 1.45% | 0.1% |
| Jun 2021 | 1.39% | 1.6% | 0.1% |
| May 2021 | 1.47% | 1.68% | 0.1% |
| Apr 2021 | 1.49% | 1.71% | 0.1% |
| Mar 2021 | 1.56% | 1.74% | 0.1% |
| Feb 2021 | 1.61% | 1.8% | 0.1% |
| Jan 2021 | 1.75% | 1.92% | 0.1% |
What it means if you are selling
More homes on the market and fewer buyers in it has three practical effects: properties take longer to sell, buyers negotiate harder, and more sales fall apart before completion.
It lands hardest on homes that need work, flats with short leases, and inherited houses that have stood empty. Those already rely on a small pool of buyers, and most of that pool needs a mortgage. When rates rise, the pool shrinks again. It is also why a sale on this kind of property tends to fail at the lender’s valuation rather than at the asking price.
A cash sale does not escape the market. Our offers are worked out from the same market as everyone else’s. What a cash sale removes is the buyer’s mortgage, the lender’s survey and the chain, which is usually what breaks a sale on a property like these. Our page on properties lenders are wary of sets out the options.
What to watch next
Inflation figures are published on 21 October and sold prices for the latest month on 28 October. The Bank of England’s next interest rate decision is on 5 November.
About these figures
The survey readings come from RICS, published on 6 October 2026, covering England and Wales. Prices come from the UK House Price Index for July 2026, the latest month available, which is based on completed sales registered with HM Land Registry. Mortgage rates are Bank of England averages of quoted rates for September, and approvals are seasonally adjusted UK figures for August.