Your UK home is now worth about what it was two years ago

The average UK home cost £299,253 in July, +0.1% higher than a year earlier and just +0.5% above its November 2024 level, according to the Lloyds House Price Index.

Prices held flat at 0.0% over the month, a fall of £143 in cash terms, following a +0.2% rise in June. On a quarterly basis prices fell -0.3%. The +0.1% annual figure marks the weakest rate of house price inflation since November 2023.

The index’s own historical data shows how narrow the range has become. The average price stood at £298,826 in July 2025, meaning the typical home gained £427 across the whole of the past year.

Over that period the series peaked at £301,051 in February 2026 and bottomed at £297,938 in December 2025, a spread of roughly £3,100.

“The UK housing market remained steady in July, with the average property price effectively unchanged over the month,” said Amanda Bryden, Head of Mortgages at Lloyds.

Bryden added that prices have moved within a narrow range for almost two years, and that the trend has held even as buyers and sellers faced a more uncertain economic backdrop this year.

Where prices are rising and falling

Northern Ireland remains the UK’s strongest performer, with annual growth of +7.4% taking the average property to £231,131. Scotland recorded +3.6% growth to £223,246, and Wales +1.6% to £231,458.

Within England, growth sits in the north. The North East rose +2.8% to £182,488 and the North West +2.1% to £247,836.

Southern England accounts for the weakest markets. The South East fell -2.0% year-on-year to £381,146, and Greater London declined -1.3% to £533,930 – still the most expensive region by a wide margin.

Mortgage rates and market activity

Bryden said affordability remains a challenge for many would-be buyers, and that mortgage rates have edged higher again following recent events in the Middle East, after easing earlier in the summer.

Bank of England figures show mortgage approvals for house purchase rose to 58,200 in June, up +2.9% on the month, though approvals stayed -10.0% below their level a year earlier.

HMRC recorded 98,700 residential transactions in June on a seasonally adjusted basis, up +0.2% over the month and +2.5% above June 2025, although the three months to June came in -1.5% below the preceding three months.

Survey data from the Royal Institution of Chartered Surveyors points to a market that remains subdued. New buyer enquiries improved to a net balance of -29% in June from -34%, and newly agreed sales to -32% from -35%.

New instructions to sell weakened sharply to -23% from -10%, indicating fewer fresh listings reaching the market.

Lloyds expects market activity and house prices to remain relatively stable over the remainder of the year, shaped by how mortgage rates respond to the inflation outlook and by wider household confidence.

The Lloyds House Price Index, formerly the Halifax House Price Index, is the UK’s longest running monthly house price series, with data going back to January 1983.

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