House price growth hit by summer lull – Land Registry

Annual house price growth slowed for the fourth consecutive month in August, Land Registry figures show.

The latest Land Registry House Price Index revealed that average property prices rose by 0.9% in August on an annual basis.

The figure was down from 1.2% in July.

Monthly price growth also slowed on average from 0.6% to 0.3%.

This put the average house price at £272,611.

Average house prices in the 12 months to August 2026 increased in England by 0.4% to £294,000, the equivalent of 0.4%. They also rose by 3.1% in Wales to £216,000 and by 2.9% in Scotland to £198,000.

The average house price increased in the year to the second quarter of 2026 to £202,000 in Northern Ireland, up 9.2%.

Of the English regions, the Land Registry said annual house price inflation was highest in the North East, where prices increased by 3.2% in the 12 months to August 2026. This was down from 4.7% in the 12 months to July 2026.

London was the English region with the lowest annual inflation, where prices decreased by 2.2% annually. This was at least an improvement on the annual fall of 3.2% in the 12 months to July 2026.

However, the Land Registry highlights that in London, the average price of flats decreased by 5.0% in the 12 months to August 2026.

Mixed picture

Jason Tebb, President of OnTheMarket, says: “The Land Registry figures, while a little dated, show that property values continued to rise on an annual basis in August, with the average property price £2,000 higher than a year ago. Increased stock, more choice and squeezed affordability as inflation continues to rise on the back of the Middle East conflict, are all combining to keep property prices in check.

“On the mortgage front, the picture is mixed, with some lenders raising rates at the same time as others trim theirs. After consecutive rate holds from the Bank of England this year, higher inflation is fuelling expectations of a rate rise, perhaps at the next meeting of the Bank of England in November.

“With the Budget imminent, and assistance for first-time buyers already flagged, the hope is that overall the government delivers a message of stability and that buyers and sellers have nothing to fear with proceeding with their transactions.”

Richard Donnell, Executive Director of Research at Zoopla says: “House price inflation is slowing as higher mortgage rates hit buyer enquires and the number of sales agreed.

“Zoopla data shows that there are fewer sales right across the country as homebuyers adopt a wait and see approach ahead of next weeks Budget. Homes that sell are doing so almost as quickly as last year, but buyers are becoming more selective, particularly when homes are are not well presented or priced unrealistically for what buyers are willing to pay. There are serious buyers in the market but it’s essential to speak to an agent to understand how to reach them.”

Nicky Stevenson, Managing Director of Fine & Country, says: “Although annual house price inflation has slowed, I would be wary of interpreting this as a housing market losing its underlying appeal. The market is still moving, but buyers are becoming more selective and the days of optimistic pricing being enough to secure a sale are firmly behind us.

“Higher mortgage costs and economic uncertainty are influencing decisions, but activity has proved relatively resilient. Transactions have held up better than mortgage approvals, suggesting that where buyers can make the numbers work, deals are still getting done. The challenge is that buyers now have a greater choice of properties, with the number of homes available for sale at its highest level for this time of year since 2014. That puts the emphasis firmly on presentation, condition and, above all, pricing.

“As we head towards the Budget, both buyers and sellers will be looking for greater clarity on the economic outlook. We may see some continued restraint in the short term, but this is a market that rewards realistic expectations rather than one that has ground to a halt. Sellers who price competitively from day one and buyers who are financially prepared can still find opportunities, even in a more demanding market.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:  “Rising wages, a recovering job market, the Chancellor ruling out CGT rises and a mansion tax extension, and house prices fairly stable, are causing more optimism among estate agents.

“More than anything, we know stability builds confidence, which has been in short supply on the ground lately with geo-political worries prompting yo-yo-ing mortgage rates. That is to say nothing of inflation, which is still sadly on the up.

“That uncertainty has resulted in buyers sitting on their hands over the past month or so when we expected an autumn pick-up, and we hope more will emerge from premature hibernation before colder days set in.”

Nathan Emerson, Chief Executive at Propertymark, says: “It is positive to see the housing market showing resilience as autumn begins. It has been a challenging year for buyers facing affordability pressures, particularly amid rising energy and fuel costs, but house prices continue to demonstrate resilience across many regions.

“With the upcoming Budget only weeks away, attention is turning to what measures the UK Government may announce to support the housing market. Any changes could influence the decisions of those considering buying or selling a home.”

Iain McKenzie, Chief Executive of The Guild of Property Professionals, comments: “The latest UK HPI underlines how cautious the housing market has become as we move further into autumn. While prices are still edging upwards, the pace of growth has lost some of its momentum.

“Affordability remains a key consideration for buyers. Mortgage rates are under renewed pressure as expectations around the future direction of interest rates shift, while inflation has risen to 3.1%, adding further strain to household budgets.

“With the possibility of a rate rise in November and the Budget on 28 October approaching, it is understandable that some buyers are taking a wait-and-see approach before making their next move.

“The key question now is whether this softer price growth continues into the final months of the year. Much will depend on the outlook for inflation, borrowing costs and consumer confidence. For sellers, realistic pricing from the outset will be essential if they want to attract serious buyers in a market where affordability is stretched and purchasing decisions are being made more carefully.”