Average UK house prices: last 3 months
The average house price in the UK is now £272,800. This is a rise of 0.90% or £2,540 over the past year.
Property type | Average house price May 2026 | Average house price June 2026 | Average house price July 2026 | Annual price change to July 2026 (£) | Annual price change to July 2026 (%) |
All property | £272,300 | £272,800 | £272,800 | £2,540 | 0.90% |
Flats/maisonettes | £192,700 | £192,200 | £191,800 | -£3,040 | -1.60% |
Terraced houses | £241,300 | £242,000 | £242,000 | £2,690 | 1.10% |
Semi-detached houses | £281,200 | £282,100 | £282,000 | £4,500 | 1.60% |
Detached houses | £457,900 | £458,300 | £458,100 | £4,950 | 1.1% |
Sales down 6% but home searches highest for a year
More buyers have started searching for homes following a slower summer shaped by higher mortgage rates and political uncertainty.
Sales agreed remain 6% lower than a year ago, but the gap is beginning to close. Searches for homes are now 7% higher than last year, their strongest annual increase for 12 months.
This is an early sign that more buyers are reassessing their options as summer draws to a close. Late August and early September also tend to bring more asking price reductions, as sellers adjust their expectations to attract returning buyers.
For the first time since August 2025, searches are higher than a year ago across every region and country of the UK.The strongest increases have been recorded in the South East (+8.9%) and East of England (+8.5%), while the North West has seen the smallest rise (+0.7%).
Higher mortgage rates reduce buying power by 9%
Average five-year fixed mortgage rates have risen from below 4% in January to around 4.8% today.
A buyer who could afford a £200,000 mortgage at the start of the year can now borrow around £182,000 for the same monthly repayment. That is a 9% reduction in buying power.
Alternatively, the average buyer would need to find an additional £18,200 for their deposit to buy the same home without increasing their monthly mortgage repayments.
The amount varies depending on local house prices. Buyers in London would need to add around £35,500, almost twice the national average. In the North East, where house prices are lower, buyers would need an additional £10,200.
These differences in affordability are also being reflected in house price growth across the country.
House price growth slows below 1%
UK house prices increased by 0.9% in the 12 months to July, down from 1.3% in June. Reduced buying power and fewer sales are putting pressure on price growth.
The impact of higher mortgage rates is being felt most strongly in southern England, particularly among first-time buyers taking out longer-term mortgages.
House prices are now flat or falling across most of the South. Average prices are 0.3% lower than a year ago in the South East and 1% lower in London.
Prices continue to rise more quickly across northern England and the Midlands. They are 1.7% higher in Yorkshire and the Humber and 3.1% higher in the North West.
Northern Ireland continues to record the strongest annual house price growth at 5.4%, although growth is also slowing.
The autumn market is warming up, but pricing will be key
Last month, we predicted that activity would begin to recover after the summer slowdown. The latest data show the first signs of that autumn pick-up beginning to emerge.
However, buyers have plenty of homes to choose from. A steady flow of new listings means there are now 5% more homes for sale than a year ago.¹ This is giving buyers more room to negotiate and putting greater pressure on sellers to price realistically.
Mortgage rates have stabilised, but they remain closer to 5% than 4%, which continues to limit what many buyers can afford.
Motivated sellers should speak to a local estate agent to understand demand in their area and make sure their asking price reflects current market conditions. Well-priced homes will continue to attract buyers and sell this autumn.
Richard Donnell, Executive Director
Outlook for the second half of 2026
Annual house price growth is expected to slow from 1.4% today towards around 1% by the end of the year. Prices are likely to remain more resilient in the North of England and Scotland, while London and the South East may see flat or modest falls.
Mortgage rates will remain the biggest influence on the market. Rates have stabilised at around 4.8%, but affordability remains stretched and any further increases could slow buyer demand.
Sales activity has weakened in recent weeks, but the year-on-year gap is expected to narrow through Q3 and Q4 as activity was already subdued in the second half of 2025. However, higher borrowing costs mean sales are now likely to finish lower than originally expected.
More homes for sale, particularly across southern England, are giving buyers greater choice and making realistic pricing increasingly important. Well-priced homes continue to attract buyers and sell.
First-time buyers remain the most sensitive to mortgage rates, especially in London where affordability is most stretched. Any future rate cuts are likely to have the biggest impact on demand from this group.
What should you do if you're moving?
The decision to act or wait looks different depending on your position in the market.
First-time buyers
Market conditions are better than they were 18 months ago. There is more choice of homes for sale, mortgage rates have fallen back in recent weeks and motivated sellers are negotiating.
However, some first-time buyers are holding back, shown in the fewer active numbers in the market. Speaking to a mortgage broker and understanding your affordability is essential as you plan your next move.
Home-movers
Well-priced homes are selling at the same speed as last year across most of the country but buyers continue to have a good choice of homes for sale across most markets.
It is essential to speak to an agent to get accurate pricing advice before you make an offer on a new property or list your home.
Sellers in London and the South
Buyers have more choice of homes for sale than a year ago and are taking longer to commit. Serious buyers are out there but they are more selective.
Pricing realistically is the key to attracting demand as overpriced homes sit on the market significantly longer and a price reduction later is more damaging than pricing correctly at the start.
About the Zoopla House Price Index
The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes (not asking prices). The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s revisionary and non-seasonally adjusted.
Download the Zoopla House Price Index, August 2026 (PDF, 475kB)
Notes on this month’s data:
Market activity data covers the four weeks to 16 August 2026 and is compared with the same period in 2025.
Mortgage rate comparisons are based on the average rate for a new 75% loan-to-value, five-year fixed mortgage across large banks.
Mortgage affordability estimates assume a typical buyer purchasing with a 75% loan-to-value mortgage over a 27-year term. They compare a five-year fixed mortgage rate of 4% in January 2026 with 4.8% in August 2026.
Source: Zoopla calculations based on buyer enquiry data.
Previous House Price Index reports
See more stories from our House Price Index