The average property value in England reached £293,000, reflecting an annual price increase of 1.1%. In Wales, house prices rose by 1.0% since July 2026, with an annual growth of 3.1% taking the average property value to £216,000. Conversely, London’s market showed signs of weakness. Although prices in the capital rose by 0.7% in the year to August 2026, the source notes an annual price decrease of 2.2%, placing the average London property value at £554,000. The highest annual growth was recorded in the North East, where prices increased by 3.2% in the year to August 2026.
Transaction volumes continued to face headwinds. The UK Property Transactions Statistics indicated that in August 2026, the estimated number of residential property transactions valued at £40,000 or greater was 95,000 on a seasonally adjusted basis. This figure is 1.9% lower than in August 2025. Between July 2026 and August 2026, UK transactions decreased by 1.5% on a seasonally adjusted basis. The ONS noted that figures for new builds and existing resold property are not being published for the two most recent months due to a lack of sufficient new build transactions to provide a meaningful result.
Regional data for England highlights significant disparities in market stress. London recorded the highest number of repossession sales, while the East of England reported the lowest. In Wales, there were four repossession sales recorded in June 2026. The official methodology for the UK HPI has been updated, with the revision period extended to 13 months following a review to ensure more comprehensive data. The index is calculated using a hedonic regression model based on data from HM Land Registry, Registers of Scotland, Land & Property Services, and the Valuation Office Agency.
A separate report from Lloyds Bank, citing data for October, described a different market sentiment, noting that the average property value was £1,882 lower in October than in September. Lloyds attributed this decline to “higher mortgage rates, a glut of homes on the market and a dearth of buyers.” The bank stated that variable rates had risen following a Bank of England rate hike and remained vulnerable to further increases heading into 2027. While the ONS data for August shows a slight annual increase, the Lloyds commentary suggests that recent months have seen sharper declines driven by interest rate pressures.
The next scheduled release of the UK House Price Index is set for 18 November 2026, which will cover data for September 2026. Investors and analysts are advised to note that the UK HPI is based on completed housing transactions, which typically take six to eight weeks to reach completion, meaning the data may lag behind current market conditions. The ONS cautions that as with other housing market indicators, data fluctuates monthly and single-month results should not be over-interpreted.
