UK house prices flat in July, annual growth 0.1%

UK house prices showed no growth in July, marking a significant slowdown in the property market's recent momentum. The latest Lloyds House Price Index, released on August 8, 2026, recorded a month-on-month change of 0%, falling short of economists' expectations for a 0.1% rise. The average property price stood at £299,253, effectively unchanged from June. Annual price growth slowed to just 0.1%, the weakest rate recorded since November 2023.

The flat reading signals a cooling market after a 0.2% increase in June, with analysts pointing to higher mortgage rates, economic uncertainty, and affordability pressures as key factors dampening buyer demand. Despite the Bank of England holding its base rate at 3.75% last week, lenders have increased mortgage rates in recent weeks in response to inflation concerns linked to the conflict in Iran. Amanda Bryden, head of mortgages at Lloyds, noted that affordability remains a challenge and that mortgage rates have edged higher again after easing earlier in the summer.

The national headline masks significant regional divergence. Northern Ireland continues to lead the UK, with prices rising 7.4% over the past year to an average of £231,131....