In England, the average house price reached £293,525 in August, marking a 0.2% monthly increase and annual growth of 0.4%, according to the Office for National Statistics (ONS).
In Wales, average house prices rose by 1% compared with July 2026, taking the average property value to £216,363. On an annual basis, prices increased by 3.1%.
Scotland recorded the strongest monthly growth of the three nations, with average house prices increasing by 0.9% month-on-month and 2.9% year-on-year to £198,397.
Chris Storey, chief commercial officer at Atom Bank, commented: “This house price rise is surprising, and it’s difficult to see where the impetus for sustained house price growth will be in the months ahead, given the pressures on household budgets and the impact higher interest rates are having on buyer confidence.”
Amy Reynolds, head of sales at Antony Roberts, said: “The Budget has slowed the market down. Stamp duty reform has been ruled out, which at least means we know where we stand, though real help would be a reduction.”
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Northern regions drive growth
The North East recorded the strongest annual house price growth among English regions, rising 3.2% in the year to August, although this was down from 4.7% in July.
Despite having the lowest average regional house price at £166,000, it was also the only region to see a notable monthly decline, with prices falling 0.6% from July.
After the North East followed the North West, where average house prices rose by 2.2% year-on-year to £220,000, while Yorkshire and the Humber recorded growth of 1.8%, taking the average property value to £209,000.
At the other end of the spectrum, London saw the weakest performance, with house prices falling 2.2% annually, albeit an improvement on the 3.2% decline recorded in July.
The downturn was driven by the flat market, where prices fell 5% over the year to August. Notably, flats made up around half of London property sales, compared with roughly one-fifth across Great Britain.
Jason Tebb, president of OnTheMarket, said: “The amount of stock available in London, combined with buyers finding it harder to raise the necessary finance to afford more expensive homes, and the ongoing appeal of houses over flats, are all contributing to this picture.”
Flats continue to decline in England
Flats and maisonettes were the only property type to record a decline in value over the period, with average prices falling by 2.9% from £225,000 to £219,000.
Semi-detached homes recorded the strongest growth, increasing by 1.7% from £287,000 to £292,000, while terraced properties rose by 1.4% to £247,000.
New-build prices dip month-on-month
The average price of a new-build home in England fell by 8.3% between May and June 2026.
Despite the sharp monthly fall, the average new-build property price stood at £367,000 in June 2026, representing a 0.2% increase year-on-year.
By comparison, the average price of an existing resold property was £289,000 in June, up 1.3% year-on-year and 0.1% month-on-month.
New-build homes commanded a premium £78,000 higher than that of an existing property in June.
Nathan Emerson, CEO of Propertymark, commented: “With the upcoming Budget only weeks away, attention is turning to what measures the UK government may announce to support the housing market. Any changes could influence the decisions of those considering buying or selling a home.”
