The latest house price reports continue to point towards a relatively subdued housing market, with affordability and higher mortgage rates putting pressure on buyers.
House prices themselves remain broadly stable overall, although there are increasing differences between regions. Buyers continue to have plenty of choice, which means sellers need to be realistic when pricing their homes.
There are also some early signs of buyer demand starting to improve as we move into the autumn.
Here’s a clear snapshot from the latest reports.
Lloyds (formerly Halifax) House Price Index
According to the latest Lloyds House Price Index, house prices fell by -0.2% during August, following a similar fall in July.
The average UK property price stood at £298,468, while annual house price growth moved into negative territory at -0.4%.
This was the first annual fall recorded by the index since November 2023, although prices remain +0.2% higher since the beginning of the year.
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.”
Lloyds noted that the housing market has faced a more difficult backdrop in recent months, with higher borrowing costs and wider economic uncertainty affecting both buyers and sellers.
Nationwide House Price Index
The latest Nationwide House Price Index painted a slightly more positive picture.
House prices increased by +0.2% during August, while annual house price growth increased slightly from +1.4% to +1.6%.
The average UK property price stood at £275,465.
Nationwide described activity and house price growth as subdued in recent months, with economic uncertainty and higher market interest rates continuing to affect the housing market.
The difference between the Lloyds and Nationwide figures is a useful reminder that the various house price indices use different data and methodologies, so the overall trend is often more useful than focusing too heavily on an individual monthly figure.
Rightmove House Price Index
The latest Rightmove House Price Index, which focuses on asking prices rather than completed sales, reported a -2.0% monthly fall in August.
The average asking price of a newly listed property fell by £7,360 to £364,999, while asking prices were -1.0% lower than a year ago.
This was the largest August fall in asking prices for eight years.
The number of homes available for sale also remained at a 12-year high for this time of year, continuing to give buyers plenty of choice.
Colleen Babcock, property expert at Rightmove, said:
“This month’s larger-than-normal price fall reflects the reality of a market where buyers have plenty of choice and sellers are having to work harder to stand out and attract them.”
Interestingly, Rightmove has since reported that buyer demand increased by 5% during the first week of September, compared with an average increase of just 0.4% during the same period over the previous five years.
This could be an early indication of the usual autumn increase in activity, although it remains too early to know whether this will develop into a sustained improvement.
Hometrack / Zoopla House Price Index
The latest Hometrack UK House Price Index also points towards a slower housing market.
UK house price growth has reduced to +0.9%, with prices flat or falling across much of southern England.
Higher mortgage rates have reduced buying power by around 9% since the beginning of the year, according to Hometrack, putting pressure on both sales and house prices during the summer.
However, there are also signs of demand starting to recover.
Home searches were 7% higher than a year ago, while buyer demand was improving across Britain.
At the same time, there were 5% more homes available for sale than a year earlier, meaning buyers continue to have plenty of choice.
Hometrack suggested that the autumn bounce is beginning to emerge, but affordability remains an important constraint and sellers need to price carefully to attract buyers.
Our Thoughts
The latest reports continue to point towards a market where buyers have plenty of choice and sellers need to be increasingly realistic.
There are some differences between the individual house price indices, but the overall picture is fairly consistent.
House prices remain relatively stable rather than falling significantly, while higher mortgage rates and affordability pressures are limiting how much some buyers can pay.
The increase in buyer demand reported by both Rightmove and Hometrack is encouraging as we move into the autumn, although the high number of properties available means sellers still face plenty of competition.
For sellers, getting the asking price right from the outset remains important.
For buyers, increased choice may create opportunities to take a little more time, negotiate and find the right property, although higher mortgage costs also need to be factored into the overall budget.
Overall, the market continues to feel relatively balanced, but with greater pressure on sellers in areas where buyers have a particularly wide choice of properties.
Information correct at time of writing – September 2026.
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