The latest house price figures show that the property market remained broadly stable in July 2026, with no monthly change in average house prices.
The average property price was £299,253, slightly lower than £299,396 in June. On an annual basis, prices were 0.1% higher than a year earlier, which is the slowest annual rate of house price growth since November 2023.
If you are thinking about buying, moving home or remortgaging, the latest figures suggest you are dealing with a relatively steady housing market rather than one experiencing large movements in property values.
It is worth noting that the Lloyds House Price Index is now called the Lloyds House Price Index. It remains the same long-running house price series, with data stretching back to 1983.
What happened to house prices in July 2026?
According to the July 2026 House Price Index:
- Average house price: £299,253
- Monthly house price change: 0.0%
- Quarterly change: -0.3%
- Annual house price growth: +0.1%
- June 2026 average house price: £299,396
This means the average property price fell by only £143 between June and July, which the report describes as effectively unchanged.
Looking back over recent months also shows how stable prices have been.
The average property price was £300,283 in January, increased to £301,051 in February, and then moved back below £300,000 during the following months. By May it stood at £298,812, before increasing to £299,396 in June and settling at £299,253 in July.
Rather than seeing prices move strongly in either direction, you are currently seeing relatively small changes from one month to the next.
House prices have been stable for almost two years
One of the more interesting points in the July report is how little average house prices have changed over a longer period.
Lloyds says average house prices have stayed within a relatively narrow range for almost two years. Prices are only around 0.5% higher than they were in November 2024.
A monthly increase or decrease can attract attention, but one month’s figure does not necessarily tell you much about the overall direction of the housing market. The report itself points out that quarterly figures can provide a clearer indication of trends because they help smooth out some of the movement seen in monthly data.
For you as a buyer or homeowner, this means it can be more helpful to look at the wider picture rather than focusing too heavily on a small monthly change.
What is happening in different regions?
The overall average hides some significant differences depending on where you live or where you are planning to buy.
Northern Ireland continued to record the strongest annual house price growth, with prices increasing by 7.4% compared with the previous year. The average property price there was £231,131.
Scotland also recorded relatively strong growth, with prices increasing by 3.6% over the year to an average of £223,246.
In Wales, prices were 1.6% higher than a year earlier, with the average property valued at £231,458.
Within England, the stronger house price growth continued to be concentrated in northern areas.
The North East recorded annual growth of 2.8%, taking the average property price to £182,488.
The North West saw annual growth of 2.1%, with the average property price reaching £247,836.
The picture was different further south.
The South East recorded an annual fall of 2.0%, with the average property price at £381,146.
Greater London also saw prices fall, with an annual decrease of 1.3% and an average property value of £533,930.
These differences are important if you are planning to move because the national average will not necessarily reflect what is happening in your local area.
What is happening with mortgage activity?
House prices are only one part of the property market. Mortgage approvals and completed transactions can also give you an idea of how active buyers are.
Residential property transactions increased by 0.2% in June to 98,700 on a seasonally adjusted basis. Transactions were also 2.5% higher than in June 2025, although activity during the three months to June was 1.5% lower than during the previous three months.
Mortgage approvals for people buying a home also increased.
There were 58,200 mortgage approvals for house purchases in June, up 2.9% compared with May. However, approvals remained 10% lower than they had been a year earlier.
This suggests there was some improvement in activity during June, but demand was still below the levels seen during the same period last year.
The latest RICS survey also showed that buyer enquiries remained weak, although there was a slight improvement compared with previous months. Newly agreed sales also improved slightly, but overall housing market activity remained subdued.
Mortgage rates remain important
One of the biggest factors affecting the housing market continues to be the cost of borrowing.
The July report notes that affordability remains a challenge for some buyers and that mortgage rates had moved higher again after falling earlier in the summer. It also highlights how quickly housing activity can respond when mortgage rates change.
This is particularly relevant if you are considering buying a property.
Even if house prices remain unchanged, a movement in mortgage rates can make a noticeable difference to your monthly mortgage payment and the amount you may be able to borrow.
For example, two people buying properties at exactly the same price could have very different monthly payments depending on their deposit, mortgage term, circumstances and the mortgage rate available to them.
This is why looking only at house prices does not give you the full picture.
What does the July House Price Index mean if you are buying?
If you are hoping to buy a property, the July figures suggest you are entering a fairly stable market.
There is no clear sign from these figures alone of prices rising rapidly, but there is also no significant national fall in property values.
That can give you more time to concentrate on whether a particular property is right for you rather than trying to predict what prices might do over the next few weeks.
You should still look carefully at your local market.
Some areas are experiencing noticeably stronger annual growth than others, while parts of the South are seeing prices below their level from a year ago.
You should also make sure you understand how much you can comfortably borrow before making an offer. An Agreement in Principle can help give you an indication of your borrowing position and can make it easier to understand what price range you should be considering.
What does this mean if you are remortgaging?
If you already own your home, changes in property values can affect the loan-to-value of your mortgage.
Your loan-to-value compares the amount you owe on your mortgage with the value of your property.
As you repay your mortgage, your outstanding balance normally reduces. If your property has also increased in value, you may move into a lower loan-to-value band.
This can sometimes give you access to a wider choice of mortgage products.
However, you should not assume that a national house price figure reflects the value of your own home. Your property’s location, condition, size and local demand will all influence its value.
If your current mortgage deal is due to end, it can be worth reviewing your options before you automatically move onto your lender’s standard variable rate.
What could happen to house prices next?
Lloyds expects property prices and housing market activity to remain relatively stable over the remainder of the year.
The report suggests that the direction of the market will partly depend on how mortgage rates respond to inflation and how confident households feel about their finances.
You should therefore be careful about making a property decision based on trying to predict whether prices will rise or fall.
If you are buying a home to live in for several years, your mortgage affordability, deposit, monthly budget and personal circumstances are normally more important than a small movement in a monthly house price index.
Speak to Kerr & Watson about your mortgage
If you are buying your first home, moving property or reviewing your existing mortgage, you can speak to Kerr & Watson about your options.
We can look at your circumstances, how much you may be able to borrow and the mortgage products available to you.
Rather than looking at a headline house price or mortgage rate in isolation, you can understand what the current market actually means for your own plans.
If you would like to discuss your mortgage options, contact Kerr & Watson and we can review your situation and help you understand the next steps.
The full report for more insights on the current state of the UK housing market: Lloyds House Price Index July 2026
Source: Lloyds Bank
