Watford & Hertfordshire property news

The property market is once again demonstrating its trademark resilience. Despite ongoing uncertainty ahead of the Autumn Budget and speculation surrounding possible property tax reforms, asking prices edged higher last month, offering a sign of stability during a period of mixed economic signals.

Sales Market Overview

Rightmove’s latest index shows the average asking price rose by 0.4% to £370,257 in September — the first monthly increase since May. However, on an annual basis, prices are now sitting 0.1% below the same month in 2024, marking the first year-on-year decline since January 2024 after several months of muted growth.

The indices that track completed transactions — typically lagging by a month or two — paint a more varied picture:

• Nationwide: Prices up 0.5% month-on-month, with annual growth at 2.2%.
• Halifax: Prices down 0.3% month-on-month, with annual growth easing to 1.3% (from 2.0% in August).

A Growing North–South Divide

Rightmove’s data highlights a pronounced north–south divide.

While the number of homes for sale is up 9% in London and the South, supply levels elsewhere have risen by just 2%. As a result, properties in the South are taking five days longer on average to find a buyer.

Yet despite these regional challenges, market activity remains encouraging:

• Nationally, sales agreed are up 4% year-on-year.
• In the South: +3%
• Rest of Great Britain: +5%

Uncertainty at the Higher End

Speculation over potential property tax changes is creating hesitation at the top of the market. More than 59% of agreed sales in London so far this year are above £500,000 — meaning they could be affected by any stamp duty replacement introduced in the Autumn Budget. Outside London, the average is far lower at 22%.

Rolstons property expert, Scott Rose, notes:

“The sensible and attractive seller pricing we've been reporting has been helping to drive more sales activity compared to last year. Static house prices, rising wages, and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago.”

Buy-to-Let & Rental Market Update

The UK rental market saw renewed momentum in September, with HomeLet reporting a new record average rent of £1,343, up 1.1% on the month and 0.9% annually.

However, the broader picture shows a market that is cooling after several intense years, with the softest conditions seen in five years, according to Zoopla.

Key Trends Driving the Rental Market

• Renter demand is 24% lower than this time last year, though still 60% above pre-pandemic levels.
• Lower migration for work and study has contributed to the dip in demand.
• Improved mortgage access for first-time buyers is easing pressure at the upper end of the rental sector.
• Rental supply has increased steadily and is now almost 20% higher year-on-year.
• Homes are taking longer to let — 16 days on average, compared to 12 days in 2023.

London’s Rental Landscape

Inner London continues to see subdued growth, with annual rents up just 0.1%, though this masks significant variation between boroughs — some of which have recorded increases of more than 8%.

Zoopla forecasts UK rents will rise by 2–3% over the remainder of 2025, signalling a return to more normalised conditions after a frantic post-pandemic period.

Breydon Duffy, Lettings Director at Rolstons, adds:

“Rents rising at their lowest level for four years will be welcome news for renters across the country. Rental market conditions are starting to normalise after a frantic few years characterised by many renters chasing too few homes.”

What This Means for Buyers, Sellers, and Landlords

For sellers:

Sensibly priced homes continue to attract strong interest, particularly outside the South, where demand remains robust.

For buyers:

Lower mortgage rates and stable prices are creating improved affordability — a welcome shift after several years of rapid increases.

For landlords:

Rents remain high in many regions, though growth is moderating. Increased supply and slightly longer letting times mean landlords will need to stay competitive on presentation and pricing.

If you'd like to talk to an agent for more personalised advice, our team is always available to help. We'd love to hear from you for a quick chat or a no-obligation property valuation.

Warm wishes
The team at Rolstons