UK House Prices Fall for First Time Since 2023

2026-09-07 06:06 By Kyrie Dichosa 1 min. read

The Lloyds House Price Index showed UK house prices fell 0.4% year-on-year in August 2026, marking the first annual decline since November 2023, after rising 0.1% in July.

Compared with the previous month, prices fell 0.2%, defying expectations of a 0.2% rise and following a 0.1% decrease in July, bringing the average property price to £298,468.

Lloyds Mortgages Director Andrew Asaam said the housing market has faced a more difficult backdrop in recent months, with global events affecting inflation and borrowing costs, while fewer homes are changing hands as buyers and sellers remain cautious.

Lloyds expects the market to remain fairly subdued in the months ahead, although wage growth and resilient employment should support demand.

Regionally, Northern Ireland recorded the strongest annual growth at 6.9%, followed by Scotland at 3.5%, the North East at 2.7%, and the North West at 2.0%.

Meanwhile, the South East posted the largest decline at 1.6%, followed by Greater London at 1.5%.



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UK House Prices Fall for First Time Since 2023
The Lloyds House Price Index showed UK house prices fell 0.4% year-on-year in August 2026, marking the first annual decline since November 2023, after rising 0.1% in July. Compared with the previous month, prices fell 0.2%, defying expectations of a 0.2% rise and following a 0.1% decrease in July, bringing the average property price to £298,468. Lloyds Mortgages Director Andrew Asaam said the housing market has faced a more difficult backdrop in recent months, with global events affecting inflation and borrowing costs, while fewer homes are changing hands as buyers and sellers remain cautious. Lloyds expects the market to remain fairly subdued in the months ahead, although wage growth and resilient employment should support demand. Regionally, Northern Ireland recorded the strongest annual growth at 6.9%, followed by Scotland at 3.5%, the North East at 2.7%, and the North West at 2.0%. Meanwhile, the South East posted the largest decline at 1.6%, followed by Greater London at 1.5%.
2026-09-07
UK House Price Growth Lowest Since 2023
The Lloyds House Price Index showed UK house prices rose 0.1% year-on-year in July 2026, slowing from a revised 0.7% increase in June and below expectations for a 0.4% gain. This marked the weakest annual growth since November 2023. Monthly, house prices were unchanged after rising 0.2% in June, leaving the average property price at £299,253. Amanda Bryden, Head of Mortgages at Lloyds, said prices have remained relatively stable for almost two years despite a more uncertain economic backdrop. Affordability remained challenging, while mortgage rates edged higher following recent Middle East events after easing earlier in the summer. Lloyds expects prices and activity to remain stable through year-end, with the outlook shaped by mortgage rates, inflation and household confidence. Regionally, Northern Ireland recorded the strongest annual growth at 7.4%, followed by Scotland at 3.6%, the North East at 2.8%, and the North West at 2.1%.
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UK House Prices Rise 0.6% in June: Lloyds
The Lloyds House Price Index showed UK house prices rose 0.6% year-on-year in June 2026, following a 0.5% increase in May. Compared to the previous month, house prices grew 0.2%, reversing May's 0.2% decline, lifting the average property price to £299,330. Amanda Bryden, Head of Mortgages at Lloyds, said the rebound was supported by easing borrowing costs as mortgage rates retreated from recent highs. However, affordability remained stretched, while broader economic uncertainty, including global developments affecting inflation and interest rate expectations, continued to weigh on the housing market. While mortgage approvals fell 14.9% in May after higher borrowing costs earlier in the year, Lloyds expects housing activity to recover if financing costs continue to ease. Regionally, Northern Ireland posted the strongest annual house price growth at 7.4%, followed by Scotland (3.9%), the North East (2.8%), and the North West (2.4%).
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