UK House Prices Flatline Amid High Mortgage Costs

UK house prices stagnated in July 2026, as high mortgage costs and global economic uncertainty halted recent gains. The average UK house price dropped marginally by £143 to stand at £299,253 following a 0.2% increase in June.

The slowest annual growth rate since November 2023 was recorded, with prices rising by just 0.1%. Northern Ireland led the way with an annual price rise of 7.4%, while Scotland and Wales saw increases of 3.6% and 1.6% respectively.

However, Southern England experienced drops, with the South East falling 2% and Greater London down 1.3%. Mortgage lenders have increased borrowing rates in response to global economic volatility and Middle East tensions, despite the Bank of England holding the base rate at 3.75%.