UK house prices were unchanged in September, according to the latest Lloyds House Price Index. The average property price stood at £298,441, with annual growth also flat at 0.0%. The September figures follow a 0.3% monthly fall in August.

For buyers and sellers, the message is that prices are holding up overall, while higher mortgage costs continue to put pressure on affordability.

Local prices tell a different story

The national figure masks considerable differences between locations. The latest annual changes include:

In Wales, the average property price reached £231,287.

These figures underline why a UK headline can only tell you so much. The market for the type of property you want, in the area you want to live, will be more relevant to your next move.

Why steady prices do not mean cheaper mortgages

A property does not need to become more expensive for it to become harder to afford.

For the same mortgage amount and term, a higher interest rate means a higher monthly repayment. It can also affect how much a lender is prepared to offer, depending on its affordability assessment and your circumstances.

That is why buyers should establish a comfortable monthly budget before making an offer. The amount you can borrow is only one part of the decision; you also need room for household bills, maintenance and other commitments.

For sellers, our view is that realistic pricing matters. A buyer may like your home and still be unable to meet the asking price within their budget. Recent comparable sales and feedback from viewings can help you judge whether your expectations match the local market.

What does this mean for first-time buyers?

The average price paid by UK first-time buyers was £236,779 in September, broadly unchanged from August and below February’s peak of £241,244.

That may offer some reassurance, but your own deposit, income and regular spending will determine what is achievable.

Before beginning a serious property search, it makes sense to understand your mortgage options and the full cost of buying. A mortgage agreement in principle can help establish an indicative budget, although it is not a guarantee of a mortgage offer.

Our view

Lloyds reports an improvement in buyer enquiries, while describing a market shaped by caution, higher mortgage rates and economic uncertainty.

Our view is that the most useful starting point is your own position. If a move is affordable and fits your plans, national price headlines should be one piece of the decision.

If your current mortgage deal is coming to an end, review your options early. Your property value can affect the proportion of its value you need to borrow, which may influence the deals available to you. A review can compare a new deal with your existing lender against remortgaging elsewhere, taking fees and any early repayment charges into account.

Planning a move or reviewing your mortgage?

Whether you are buying your first home, moving or reviewing an existing mortgage, we can help you understand your options in plain English.

Chetwood Lloyd Mortgages offers independent, fee-free mortgage advice with access to more than 100 lenders.

Get in touch to discuss a budget and mortgage that fit your circumstances.