Welcome to Yorkshire
Published on September 7th, 2026
•In August 2026, the average house price in the UK has experienced a slight dip, marking a continuation of a subdued housing market. According to the latest figures from the Lloyds House Price Index, house prices fell by 0.2% during the month, following a smaller decrease of 0.1% in July. The average cost of a property now stands at £298,468, down from £299,153 in July. This decline also represents the first annual drop in house prices since November 2023, with prices down by 0.4% compared to the same time last year.
Trends in the Housing Market
Andrew Asaam, Mortgages Director at Lloyds, highlighted that:
“UK house prices fell slightly in August, down -0.2% over the month following a similar decline in July.”
Despite this downturn, he noted that prices have increased by 0.2% since the beginning of the year. Asaam explained that the housing market has been facing challenges due to global events affecting inflation and borrowing costs, leading to greater economic uncertainty.
Interestingly, there has not been a rush of homeowners reducing their asking prices. Many sellers are hesitant to accept offers they consider too low, while some buyers are choosing to wait and see how the market develops. This cautious approach has resulted in fewer property transactions, with mortgage approvals reaching their lowest levels since early 2024.
Asaam emphasized the importance of viewing these recent price changes in context.
“Average house prices remain around 25% higher than they were at the end of 2019.”
This is despite the significant increase in interest rates in recent years. The gradual adjustment to these higher borrowing costs has been somewhat cushioned by wage growth, which has helped people manage their housing expenses.
Regional Price Variations
House price performance varies significantly across different regions of the UK. Northern Ireland has continued to show the strongest annual growth, with prices increasing by 6.9% year-on-year, bringing the average property value to an all-time high of £231,245. Scotland has also experienced solid growth, with an annual increase of 3.5%, resulting in an average property price of £223,437. In Wales, prices have risen by 0.6%, with a typical property now valued at £230,282.
In England, the northern regions are faring better compared to the south. The North East has seen an annual growth of 2.7%, with the average home price reaching £184,370. Meanwhile, the North West recorded an increase of 2.0%, bringing the average price to £248,675.
Conversely, southern England is facing challenges, with affordability issues stemming from higher average property prices. The South East has experienced the largest decline, with prices falling by 1.6% year-on-year to £381,729. Greater London has also seen a decrease of 1.5%, with the average property costing £534,177. The South West and Eastern England both recorded annual declines of 1.2%, with average prices of £298,807 and £331,410, respectively.
What Lies Ahead?
The outlook for the housing market remains cautious. Asaam noted:
“We expect the market to remain fairly subdued in the months ahead, but this will likely only have a limited impact on house prices.”
He pointed out that while affordability is still a concern, wages are continuing to grow, and employment levels have remained stable, which should support demand from those looking to move.
As the market adjusts to the current economic climate, potential buyers and sellers are encouraged to stay informed about local trends and conditions. Understanding the dynamics of the housing market can help individuals make more informed decisions whether they are looking to purchase a new home or sell their current property.
For those interested in the finer details, further data on national and regional house prices is available, providing insights into how different areas are performing. This information can help residents and potential homebuyers in Yorkshire and beyond navigate the complexities of the current housing landscape.
