UK average house price drops year-on-year for first time since November 2023

According to Lloyds' latest index, the average UK house price decreased by 0.2% in August, delivering the first annual fall since November 2023 and setting the national average at £298,468. Despite the decline, prices remain roughly 25% higher than at the end of 2019. Regional variations show a 0.6% annual rise in Wales and the strongest growth in northern England, whereas southern regions face affordability challenges that curb price gains.

Mortgage director Andrew Asaam attributes the slowdown to global inflation pressures, higher interest rates and cautious seller behaviour, with many owners reluctant to lower asking prices. Industry commentators note that while wages and employment are holding up, rising mortgage rates could further strain first-time buyers. Looking ahead, the market is expected to stay subdued but not collapse, supported by steady demand from those needing to move.