UK House Prices Fall at Steepest Monthly Rate in More Than Three Years
UK house prices fell 0.6% in October 2026 compared with September, according to Halifax (Lloyds), the steepest monthly fall in more than three years. Halifax's figures, published on 6 November, put the average price of a typical UK property at £296,285. Analysts had expected a rise of 0.1%.
The Halifax index is produced by Lloyds Banking Group, and it tracks prices agreed for homes across the country each month. October was the fourth consecutive monthly decline. Compared with October last year, prices were down 1.2%, the biggest annual fall since October 2023.
The decline varied by region. Halifax said average prices in Greater London fell 3.1% year on year to £524,892. In south-east England they fell 2.4% to £379,258, and in south-west England they fell 2.4% to £298,057.
A separate monthly measure from Nationwide points the same way, though less sharply. Nationwide reported that annual house price growth slowed to 0.5% in October, down from 0.8% in September. That was the slowest rate since January 2024, and the median forecast of economists polled had been 0.6%.
Borrowing costs remain high. The Bank of England raised its base rate, the interest rate it sets that feeds into what lenders charge, by a quarter of a percentage point to 4%. It was the first increase in three years. UK inflation, the rate at which prices rise across the economy, was 3.5% in September.
Moneyfacts, which tracks mortgage deals, put the average two-year fixed mortgage rate at 5.97% and the average five-year fixed rate at 5.99%. A fixed rate is one that stays the same for a set period, after which borrowers usually move to a new deal.
Demand has also weakened. Property portal Rightmove reported that buyer demand fell 10% and agreed sales were down 9%, which it linked to high mortgage rates. Rental prices, by contrast, were up 2.9% on a year earlier.
Looking further ahead, the property firm Savills said it did not expect Britain's housing market to recover until 2028.
