# ‘Gathering dark clouds’ for the property market with 0% growth for house prices

By Sarah Coles — 2026-10-07

Sarah Coles, head of personal finance at AJ Bell, explains why there could be some hope for first-time buyers despite UK house prices stalling in September.

She said: “The property market clung on to prices in September, after last month’s annual price drop.

“It’s not much to write home about, especially given that the market usually perks up as the nights draw in, and it may not last either.

“Buyers have done a decent job of defying sky-high mortgage rates, with the average two- and five-year fixed rates now around six per cent, and five per cent fixed mortgage rates rapidly becoming a thing of the past.

“Lloyds says new buyer enquiries are growing, but it remains to be seen whether they will stay the course once they’ve realised just how much the mortgage on their new home could cost each month.

“If mortgage rates remain high, there’s a decent chance that an unremarkable autumn could make way for a more miserable winter. It could become more of a struggle to sell and we could see prices fall.

“Falling house prices tend to have an impact on consumer confidence more broadly, because when our home is losing value, we feel less wealthy and may hold back on spending. A more prolonged period of weakness could have wider consequences on the rest of the economy.

“The small silver lining on the black cloud hanging over the property market is that it could herald some hope for first-time buyers.

“Prices for these buyers remained unchanged in September, but are still below their highs of February. It means that if you have a decent deposit and a mortgage you can afford, you could snap up a bargain.

“If the mortgage is more of a stretch, you know there’s no rush, because property prices aren’t likely to rise out of reach in a hurry.

“You can take the time to build your deposit, possibly asking family for help or using the Lifetime ISA to get a bonus from the government.

“Then, when the time is right, you’ll be in a much stronger position financially.”

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