UK House Prices Stall as Buyer Demand Rises

The housing market has fragmented, and while some neighbourhoods are thriving, sellers in other areas are in despair.

Market analysts report neither booming house prices nor a steep decline in property values.

Lender statistics published in September 2026 reflect a market finding its footing:

• Nationwide Index: Recorded a 0.2% seasonally adjusted month-on-month increase in August 2026, bringing annual house price growth to 1.6%. Nationwide's average house price stands at £275,465.
• Lloyds Index (formerly Halifax): Showed a 0.2% month-on-month fall in August 2026, with property prices averaging £298,468 and an annual change of -0.4%.
• ONS Data: The latest official figures from the Office for National Statistics show average UK property prices increased by 1.4 percent in the 12 months to July 2026, reaching an average of £273,000.

Highest and lowest price changes

“The North East was the English region with the highest house price inflation, at 4.9%, in the 12 months to July 2026. This was up from 4.0 percent in the 12 months to June 2026,” says the ONS report.

“The lowest annual percentage change in house price inflation was in London, where prices decreased by 3.3 percent in the 12 months to July 2026, down from an annual fall of 3.1 percent in the 12 months to June 2026.

“This is the eleventh consecutive month where there has been an annual fall in house prices in London, with Inner London particularly affected, and represents the lowest annual rate for London since January 2024. The average house price in London is now £19,000 below the recent peak in July 2025, at £569,000.”

The gap between these figures stems from methodological weighting, not conflicting trends. Taken together, they highlight a market moving sideways with low single-digit annual variances.

Following a quiet summer, buyer interest bounced back sharply. Online property portal Rightmove reported buyer demand rose by 5 percent during the first week of September 2026 as home-movers returned from summer breaks—a notable jump compared to the 0.4 percent five-year average for the same week.

Affordability hits regions

However, this increase in buyer interest is balanced by elevated stock levels. Available choice is near multi-year highs in several regions, giving buyers more leverage in negotiations and keeping broad upward price pressure in check.

Performance across regions and property categories remains sharply divided:

• Regional Variance: Lower-priced, highly affordable regions in the North West continue to outperform the national average, supported by tighter affordability ratios. Conversely, prime areas in London and the South of England face heavier affordability constraints, with asking prices down in several southern postcodes.
• Property Types: Houses (detached, semi-detached, and terraced) have maintained modest positive annual growth. Flats and apartments continue to lag, driven by increased supply, higher service charges, and shifting buyer preferences toward private outdoor space.

Here’s how the ONS sees the regional landscape for house prices in July 2026:

Source: ONS