October 2025 has been a fascinating month for the UK property market. As we head into the final quarter of the year, we’re seeing some interesting shifts that every buyer, seller, and investor should know about. From regional market variations to auction activity and the looming Autumn budget, there’s plenty to unpack.
The overall picture? Stability with a side of cautious optimism. House prices are showing modest growth of 2-4% year-to-date, which might sound underwhelming, but with inflation sitting around 3.8%, we’re essentially seeing neutral real growth. That’s actually good news for market sustainability.
The Great North-South Divide
The regional differences this October are more pronounced than we’ve seen in years. The South of England is experiencing a completely different market compared to the North, and it’s worth understanding why.
Down south, particularly in London and the South East, we’re seeing 9% more homes for sale compared to 2024. That’s significantly above the 2% national average, which means southern buyers have more choice but sellers face stiffer competition. Properties in the South are taking about five days longer to find a buyer than elsewhere – that’s the market telling us that sharp pricing really matters when there’s more competition.
Meanwhile, the North of England continues to show impressive resilience. Yorkshire, the North West, and other northern regions are experiencing stronger price increases and faster sales. Northern investors are benefiting from better yields and improved liquidity, making these areas increasingly attractive for both domestic and overseas buyers.
For auction houses like ourselves, this regional split is creating interesting opportunities. Northern properties are often snapped up quickly at auction, while southern lots require more realistic reserve prices to generate the same level of bidding activity.
Auction Activity Remains Robust
The auction market has been surprisingly buoyant this October. While some traditional estate agency sales have slowed due to pre-budget uncertainty, auctions continue to attract committed buyers who want to move quickly and decisively.
Online auctions, in particular, are thriving. The convenience factor combined with competitive starting prices means we’re seeing strong attendance from both seasoned investors and first-time auction buyers. The major national auction houses are reporting healthy completion rates, with the upcoming Auction House sale on 21st October expected to draw significant interest.
What’s particularly interesting is the diversity of properties coming to auction. We’re seeing everything from traditional buy-to-let opportunities to unique commercial conversions and development plots. The auction route is increasingly seen as a legitimate first choice rather than a last resort for sellers.
Pre-Budget Jitters and Investor Sentiment
Let’s address the elephant in the room – the Autumn budget scheduled for late November. The uncertainty around potential property tax changes is definitely affecting investor sentiment, but not quite in the way you might expect.
Rumors about stamp duty changes and a possible mansion tax are creating caution, particularly for properties over £500,000. Demand for higher-priced homes has slipped by 4% over the past five weeks, with new listings in this bracket down 7%. London and the South are feeling this most acutely, as buyers want certainty about their moving costs before committing.
However, in the mainstream market segments where most auction activity happens, buyer confidence remains solid. Sales agreed are actually 4% higher year-on-year, showing that when the price and presentation are right, buyers are still willing to move.
Smart investors are taking a wait-and-see approach to major portfolio expansion, but they’re not sitting idle. Many are using this period to research opportunities, particularly in regions less likely to be affected by potential tax changes.
Commercial Sector Shows Promise
The commercial property sector is experiencing a notable uptick as we approach Q4. Savills predicts that office and industrial investments will exceed 2024’s figures, with the final quarter expected to be particularly busy.
Industrial and logistics properties continue to perform well, driven by ongoing e-commerce growth and supply chain restructuring. Office assets, while still facing headwinds from hybrid working trends, are showing signs of stabilization in prime locations.
For auction buyers, commercial properties represent an interesting opportunity. The combination of potentially attractive yields and less competition from traditional investors means there are genuine bargains to be found. We’ve seen increased interest in mixed-use properties and smaller commercial units that might suit owner-occupiers or those looking to diversify their portfolios.
Property Investor Show Insights
This month’s Property Investor Show at Excel London provided some valuable insights into where the market is heading. The UK’s biggest investment expo showcased everything from cutting-edge proptech to tried-and-tested buy-to-let strategies.
Key themes from the show included:
Proptech Integration: Technology is becoming essential for property investors, from virtual viewings to automated tenant management systems.
Sustainable Investing: ESG considerations are no longer nice-to-have; they’re becoming essential for long-term investment success.
Regional Opportunities: There was significant buzz around northern investment opportunities, with several exhibitors highlighting the North West and Yorkshire as key growth areas.
Alternative Assets: Interest in student accommodation, co-living spaces, and short-term rental properties continues to grow.
The networking atmosphere remained strong, with particular enthusiasm from overseas investors looking for UK opportunities and existing landlords seeking inspiration in what many acknowledge is a more cautious market environment.
Mortgage Market Stability
One piece of positive news is mortgage rate stability. Rates have settled around the 5% mark on average, which is providing enough affordability improvement to keep committed buyers moving. Buy-to-let rates have become particularly competitive, with some two-year fixed-rate products now starting from 2.24%.
The combination of falling base rates and gradually rising wages is creating real improvements in affordability, though progress is slower than many hoped for earlier in the year. This measured improvement is actually healthy for long-term market stability.
What You Need to Know Now
For Buyers: Don’t let pre-budget uncertainty paralyze you. If you find the right property at the right price, the fundamentals suggest now could be a good time to move. Just ensure you have your financing in place and realistic expectations about timescales.
For Sellers: Price accurately from the start, especially in the South where there’s more competition. Properties that sit on the market too long become stigmatized, so it’s better to price competitively and potentially achieve a quick sale.
For Investors: Regional diversification makes sense right now. While London and the South might offer long-term growth potential, northern markets are providing better immediate returns and liquidity. Consider auction purchases for speed and potential value opportunities.
For Auction Participants: The auction market remains active and competitive. Do your homework on lot research, arrange finance in advance, and don’t get caught up in bidding wars that push prices beyond sensible investment returns.
Looking Ahead
After the inevitable short-term turbulence from budget announcements, the outlook appears cautiously positive. The elevated supply levels should keep house price inflation in check, while gradually improving affordability should support steady demand.
The auction market, in particular, seems well-positioned to benefit from this environment. Buyers seeking value and quick transactions naturally gravitate toward auctions, while sellers appreciate the certainty and speed of the process.
As we move toward the end of 2025, the key will be adaptability. Regional variations, changing buyer preferences, and evolving financing options all create opportunities for those prepared to stay informed and act decisively.
The fundamentals of the UK property market remain sound. Population growth, housing supply constraints, and the ongoing need for investment returns all support continued activity. Success will come to those who understand the nuances of this evolving market and position themselves accordingly.
Whether you’re buying, selling, or investing, October 2025 offers opportunities for those willing to navigate the current landscape with knowledge, patience, and strategic thinking.
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