European Investor
07 Sep 2026, 10:09
UK House Prices Fall 0.2% in August, Missing Expectations
UK house prices declined more than expected in August, pointing to renewed weakness in the residential property market.
The Lloyds House Price Index fell 0.2% month over month, compared with expectations for a 0.2% increase and following a 0.1% decline previously.
On an annual basis, house prices fell 0.4%, deteriorating from 0.1% growth in the previous month and marking a shift into negative territory.
Meanwhile, the average UK mortgage rate remained unchanged at 6.58% in August. Elevated borrowing costs continue to constrain housing affordability and buyer demand.
The weaker-than-expected housing data adds to signs of pressure on the UK property market, with high mortgage rates limiting demand despite expectations surrounding the Bank of England’s future monetary policy path.
UK house prices declined more than expected in August, pointing to renewed weakness in the residential property market.
The Lloyds House Price Index fell 0.2% month over month, compared with expectations for a 0.2% increase and following a 0.1% decline previously.
On an annual basis, house prices fell 0.4%, deteriorating from 0.1% growth in the previous month and marking a shift into negative territory.
Meanwhile, the average UK mortgage rate remained unchanged at 6.58% in August. Elevated borrowing costs continue to constrain housing affordability and buyer demand.
The weaker-than-expected housing data adds to signs of pressure on the UK property market, with high mortgage rates limiting demand despite expectations surrounding the Bank of England’s future monetary policy path.
