Southern England Emerges as Main Winner of Static House Prices and Lower Rates

House buyers in the South of England are emerging as the main winners of improved affordability in 2025. With average asking prices softening and mortgage rates edging lower, buyers in London, the South East and South West are saving more on monthly repayments than any other region of the UK.

Rightmove’s latest analysis shows that in London, where average asking prices are now 1.1% lower than last year, a buyer purchasing at the average asking price could save £181 a month on mortgage payments. In the South East, savings average £120 per month, while in the South West, it’s around £106 per month.

By contrast, buyers in Scotland are seeing only modest relief, with average monthly payments down just £23, as asking prices have risen by 2.6% year-on-year. Across the UK as a whole, average monthly mortgage payments have fallen by £84, now standing at £1,506 compared with £1,590 last year. The typical asking price of a UK home currently sits at £370,257, while the average two-year fixed rate has dropped from 4.99% to 4.53%.

Colleen Babcock, property expert at Rightmove, highlighted that competition among sellers and higher stamp duty costs have been key factors in driving down asking prices in the South. She noted:

“The result for buyers is improved affordability when combined with lower mortgage rates, and the higher rate of agreed sales compared to last year suggests many are taking advantage.”

However, she also warned that affordability remains stretched:

“It’s still much more expensive to purchase a home in London and the South of England compared to other areas of Great Britain, so affordability is still stretched despite the increase in purchasing power.”