Autumn Budget needs to stimulate housing market
The latest House Price Index figures emphasise an urgent need for the government to announce cost effective measures in the Autumn Budget next week to help stimulate a stagnant housing market, says RSM UK.
The figures released today show average house prices increased by just 0.9% in the year to August 2026, down from an annual increase of 1.2% in the year to July 2026, with an average UK house price in August of £273,000. These results were again driven by a concerning trend of decline in London, which showed an annual fall of 2.2%, with flats seeing an annual fall of 5% in the region.
It follows a recent report from The Royal Institution of Chartered Surveyors’ (RICS’) that mortgage approvals for house purchases, an indicator of future borrowing, decreased to 54,900 in August, below an average of 60,100 over the previous six months.
Stacy Eden National Head of Real Estate at RSM UK said: “Today’s data shows a continuation of a clear and concerning trend in the UK housing market, with prices having flatlined on a national level. Attention is now firmly fixed on the Autumn Budget, which offers a crucial opportunity for the government to provide much-needed measures to support the sector.
“Penal rates of Stamp Duty Land Tax (SDLT), high mortgage rates and concerns around flats continue to weigh on the market, particularly in London which continues to drag down the national average. Viability remains a key concern across regions. While the announced ‘Your First Homes’ scheme is a positive step towards supporting demand from first-time buyers, more is needed to address the long-term consequences of rising development costs for new homes and flattening house prices.
“The build-to-rent (BTR) sector plays a crucial role in housing delivery, providing homes between 30-60% faster than other housing. However, the sector remains significantly challenged, with average private rents in England rising by 4% in the year to September 2026, and with private landlords exiting the market due to regulatory and tax headwinds. Measures to boost the BTR sector could therefore go a long way to boosting the market and supporting delivery efforts.
“Although Andy Burnham has ruled out changes to SDLT in the Autumn budget, we’d like to see the government prioritise future reforms to stimulate demand. Reintroducing targeted Stamp Duty Land Tax support for high-density housing, particularly targeted multiple dwelling relief, could help to generate significant revenue and kickstart development.