UK House Prices See First Annual Drop Since 2023

UK house prices fell 0.4% year-on-year in August 2026 — the first annual decline since November 2023 — defying forecasts of a 0.2% rise. The average property cost £298,468, down £685 from July, per Lloyds. Mortgage approvals hit their lowest since early 2024 as two-year fixed rates climbed to 5.6%, up from below 5% in January.