Overview
- Lloyds’ house price index, published on Monday, showed average UK prices fell 0.4% year‑on‑year in August to £298,468 and slipped 0.2% month‑on‑month.
- Mortgage costs have climbed, with Moneyfacts putting typical two‑year and five‑year fixed deals around 5.6%, and several lenders have begun to reprice products in response.
- Housing activity is weakening: mortgage approvals are at their lowest level since early 2024 and HMRC data show roughly a 4% drop in transactions in the three months to July.
- The slowdown is uneven across the country, with London and the South East recording the largest annual falls and Northern Ireland, Scotland and some northern English regions still posting gains.
- Industry experts say the short‑term outlook hinges on Bank of England policy, moves in wholesale swap and bond markets, and whether wage growth and employment hold up to support demand.