House prices fell slightly in August (-0.2%), following a -0.1% decrease in July. Average property price now £298,468 compared with £299,153 in July. On an annual basis prices have fallen by -0.4%, the first year-on-year decrease since November 2023. Northern Ireland continues to record the UK’s strongest annual growth at +6.9%.
Nations and regions house prices
As has been the case for several months, there remains a clear divide in house price performance across the UK.
Northern Ireland continues to record the strongest annual growth, with prices up +6.9% year-on-year. While that's a slower pace than seen recently, the average property value now stands at an all-time high of £231,245.
Scotland also continues to see solid growth, with prices rising +3.5% over the past year to an average of £223,437. In Wales, annual growth stands at +0.6%, taking the typical property value to £230,282.
Within England, growth remains strongest in northern regions. The North East recorded annual growth of +2.7%, taking the average property price to £184,370, while the North West saw prices rise +2.0% to £248,675.
By contrast, price growth remains under pressure across much of southern England, reflecting the greater affordability challenge caused by higher average prices.
The South East saw the largest decline, with prices down -1.6% year-on-year to £381,729, followed byGreater London, where prices fell -1.5% to £534,177. The South West and Eastern England both recorded annual declines of -1.2%, with average prices of £298,807 and £331,410 respectively.
Andrew Asaam, Mortgages Director at Lloyds, said:
“UK house prices fell slightly in August, down -0.2% over the month following a similar decline in July. The average property now costs £298,468, marking the first annual fall in house prices since November 2023. Despite that, prices are still marginally up (+0.2%) since the start of the year.
“The housing market has faced a more difficult backdrop in recent months, with the impact of global events on inflation and borrowing costs creating greater economic uncertainty. What we're not seeing is a rush of homeowners cutting prices. But more are choosing to sit tight, with sellers reluctant to accept offers they feel are too low, while some buyers are waiting to see how conditions develop.
“As a result, fewer homes are changing hands, with latest industry figures showing mortgage approvals now at their lowest level since the start of 2024.
“It's also important to keep recent price movements in perspective. Average house prices remain around 25% higher than they were at the end of 2019, despite the substantial increase to interest rates seen over recent years. The market's adjustment to higher borrowing costs has been gradual, with wage growth helping to offset some of the pressure on affordability. The recent modest declines in prices are best viewed in that wider context.
“We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices. While affordability remains a challenge, wages continue to grow and employment has held up better than many anticipated. This will help to support demand from those who need or want to move.”
