The Lloyds House Price Index showed that UK house prices rose by 0.1% year-on-year in July 2026, down from a revised 0.7% increase in June and falling short of expectations for a 0.4% gain. This was the weakest annual growth rate since November 2023. On a monthly basis, prices were flat in July after a 0.2% rise in June, leaving the average property price at £299,253.
Amanda Bryden, Head of Mortgages at Lloyds, noted that prices have held relatively steady for almost two years, despite a more uncertain economic environment. She added that affordability remains stretched, while mortgage rates have inched higher following recent events in the Middle East, reversing some of the easing seen earlier in the summer.
Lloyds expects both prices and market activity to remain broadly stable through the end of the year, with the outlook largely dependent on the trajectory of mortgage rates, inflation, and household confidence. Regionally, Northern Ireland recorded the strongest annual house price growth at 7.4%, followed by Scotland at 3.6%, the North East at 2.8%, and the North West at 2.1%.
