The Lloyds House Price Index reported that UK property prices fell by 0.4% year-on-year in August 2026, the first annual decline since November 2023, following a 0.1% increase in July. On a monthly basis, prices slipped 0.2%, confounding expectations for a 0.2% rise and extending July’s 0.1% fall. This brought the average property price down to £298,468.
According to Lloyds Mortgages Director Andrew Asaam, the housing market has been operating against a more challenging backdrop in recent months, with global developments feeding through to higher inflation and borrowing costs. At the same time, transaction volumes have fallen as both buyers and sellers adopt a more cautious stance. Lloyds expects the market to remain relatively subdued in the near term, though it notes that wage growth and a resilient labour market should continue to underpin demand.
Regionally, Northern Ireland saw the strongest annual price growth at 6.9%, followed by Scotland at 3.5%, the North East at 2.7%, and the North West at 2.0%. In contrast, the South East recorded the sharpest annual decline at 1.6%, with prices in Greater London down 1.5%.
