Sussex property news: South East prices down 2.1%, five-year fixes at 6% and the 28 October Budget (17 October 2026)
The first half of October brought September's Lloyds index, which shows South East prices falling faster than almost anywhere in Britain, and a RICS survey in which surveyors reported weaker buyer demand. Mortgage rates rose again, with the average five-year fix reaching 6%, and the Autumn Budget on 28 October is now the date to watch for stamp duty and first-time buyer news.
South East house prices down 2.1% in a year to £380,829, says Lloyds
The Lloyds House Price Index (the Halifax index under its new name since July, same method) put the South East average at £380,829 in September, 2.1% lower than a year earlier. Only Greater London fell further, down 2.2% to £531,548. Across the UK prices were flat: 0.0% on the month and 0.0% on the year, with the average home at £298,441 after a 0.3% fall in August.
Lloyds said new enquiries from buyers are at their highest since February, and expects any price movement to stay modest. The average first-time buyer property was £236,779, below February's record of £241,244. For Sussex sellers, the regional figure is the one to price against: the South East is one of the weakest regions in Britain, while the north and Northern Ireland (up 7.4%) are still rising.
RICS surveyors' price balance slips to -32% as buyer enquiries fall
The Royal Institution of Chartered Surveyors' September survey showed the headline house price balance falling to -32% from -28% in August, ending four months of improvement. New buyer enquiries dropped to -22% from -18%, the first weakening since March, and agreed sales slipped to -18%. RICS said most parts of England reported more negative price balances in September.
There was one sign of more choice for buyers: new sales instructions rose to +6%, the first positive reading since mid-2025. Surveyors expect prices to keep falling over the next three months (-24%) but to be flat over 12 months. In lettings, tenant demand rose (+23%) while landlord instructions kept falling, and a net +37% expect rents to rise over the next three months.
Average five-year fixed mortgage hits 6% and sub-5% deals all but vanish
Moneyfactscompare.co.uk said the average five-year fixed rate reached 6%, the first time in roughly three years, and the average two-year fix rose from 5.96% on 2 October to 5.98% on 5 October, its highest since mid-December 2023. Fixed deals priced below 5% fell from 1,494 at the start of September to nine. Barclays raised selected fixed rates four times in September, and HSBC, Lloyds Bank, Nationwide, Santander and TSB three times each.
Moneyfacts linked the rises to swap rates, Middle East pressure on oil prices and a bond sell-off that took 10-year gilt yields to an 18-year high. Variable deals held up better, with 389 still under 5%. Anyone whose fixed deal ends in the next few months should compare a new fix against a tracker, bearing in mind Moneyfacts' note that a Bank Rate rise is expected before the year ends.
Budget on 28 October: no immediate stamp duty change, first-time buyer details due
Chancellor John Healey delivers the Autumn Budget on Wednesday 28 October. Moneyfacts reports that immediate reform or abolition of stamp duty has been ruled out by the Prime Minister, so buyers in England should budget for the current rates. Full eligibility rules, income caps and local price caps for the Your First Home scheme for new-build buyers are expected at the Budget, according to Lloyds.
Two property measures are reported as under consideration rather than decided: lowering the threshold of the High Value Council Tax Surcharge (due from April 2028) from £2 million to £1.5 million, and taxing holiday lets as second homes. Owners of coastal holiday lets in Sussex should wait for the speech before acting on either.
Source: Moneyfactscompare.co.uk, 15 October 2026; Lloyds House Price Index, 7 October 2026.
What this means if you are moving in Sussex
Prices in the South East are drifting down while borrowing costs climb, so buyers have room to negotiate and sellers need realistic asking prices. If you are remortgaging or buying with a mortgage, get an agreement in principle now and check how long the lender will hold the rate, because the cheapest fixes have been repriced several times in a month.