Rightmove: Southern price drops ease buyer pressure as mortgage costs fall

Prices on property listings in the south fell over the past year, Rightmove said, with London, the southwest, the southeast and the West Midlands all posting declines in the year to September. The southwest posted the sharpest drop, with asking prices down 1.3% to £382,531 as demand cooled for coastal properties and buyers sought more affordable options inland.

London meanwhile slipped 1.1% year over year to £675,074, reflecting a pull among affluent buyers amid sensitive wealth dynamics and higher stamp duties. The southeast market showed a 0.7% decline to £479,982, while the West Midlands posted a marginal 0.1% drop to £293,645. Beyond the south, other regions moved in different directions: the Northwest rose 3.2% to £270,275 and Scotland climbed 2.6% to £199,146. Yorkshire and the Humber rose 2% to £258,568, Wales rose 0.9% to £267,528, and the East Midlands and the Northeast each posted gains of about 0.9% and 0.5%, to £291,578 and £194,737 respectively. The East of England rose 0.2% to £291,578 as well.

The picture is mixed, but the trend toward lower asking prices in the south has coincided with easing mortgage costs, helping buyers who are able to secure financing. Higher rates and tax charges have kept some buyers away in London and the south, even as affordability improves when combined with lower mortgage payments.

Across Britain, the average monthly mortgage payment has fallen by £84 over the year to £1,506. London saw the steepest relief, down £181 to £2,927 per month. The two-year fixed mortgage rate has fallen from 4.99% a year ago to 4.53% today as lenders cut rates in response to traditional BoE base-rate moves. In the southeast, monthly payments dropped by about £120 to £2,073, while the southwest saw a £106 reduction to £1,662. Scotland’s typical payment declined by about £23 to £833.

The data come as buyers benefit from both lower mortgage rates and more favorable listings in the south, where repurchase demand and a slower pace of listing growth have contributed to improved affordability relative to a year ago. Still, even with the rate relief, prices in London and the south remain high compared with other regions of Great Britain, underscoring a split market that varies significantly by locale.

For borrowers aiming to lock in a rate, market guidance emphasizes shopping around and acting sooner rather than later. Rate shopping and broker consultation can help secure a deal ahead of fixed-rate expirations, and buyers planning new purchases should set expectations about monthly payments given continued rate volatility. Remortgage options and the potential to roll fees into the loan are considerations some borrowers weigh as they compare deals. While this report focuses on data through September, mortgage costs can change with policy shifts and lender competition.

Overall, the Rightmove snapshot shows a bifurcated market: price declines in the south are easing the burden for buyers and reducing monthly payments, while regions with more competitive demand, such as the northwest and parts of Scotland, are posting price increases. As mortgage costs trend lower, the volatility in regional markets will continue to shape buyer confidence and seller pricing in the months ahead.