Average house prices flatlined in July, remaining at £299,253 following a 0.2% rise in June, the latest house price index from Lloyds reveals.
The annual growth rate of 0.1% was the slowest recorded for almost three years.
Across the UK, Northern Ireland continues to see the strongest annual growth at 7.4%, taking the average property price to £231,131, according to the Lloyds’ house price index, which was previously known as the Halifax HPI.
Scotland recorded a 3.6% rise in average prices to £223,246.
In Wales, annual growth was 1.6% to £231,458.
In England, stronger price growth remains concentrated in northern regions.
The North East recorded annual growth of 2.8% to £182,488 and the North West saw prices rise by 2.1% to £247,836.
By contrast, the weakest regional markets in terms of growth remain in southern England, where average prices remain much higher.
The South East saw prices fall 2% to £381,146, while Greater London recorded a 1.3% decline to £533,930.
Lloyds head of mortgages Amanda Bryden says: “Average house prices have remained relatively stable for almost two years, moving within a narrow range over that period and sitting just 0.5% higher than they were in November 2024.
“That trend has persisted even as buyers and sellers have faced a more uncertain economic backdrop this year.
“Affordability remains a challenge for many would-be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer.
“Looking ahead, we expect market activity and house prices to remain relatively stable over the remainder of the year.”
North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “No fireworks were expected or seen this month as activity continued steadily.
“Wage growth outpacing property price inflation continues to counter-balance the amount of stock, especially flats, overhanging the market as well as concerns over the likelihood of mortgage rate and inflation rises.
“We are increasingly hearing that speculation about property tax changes in the Budget is becoming more of a factor in decision-making.
“The result is a stand-off between buyers and sellers but some price-softening if sellers are serious about getting their transactions over the line.”
Propertymark chief executive Nathan Emerson says: “There is no denying that 2026 has presented affordability challenges for both existing homeowners and first-time buyers.”
But he says: “With interest rates remaining steady and inflation unexpectedly falling last month, conditions may be improving to better support greater buyer confidence as the year progresses.
“However, lower mortgage applications and reduced lending over the previous quarter are likely to continue influencing market activity in the months ahead.
“Economic recovery also has the potential to vary by region, while changing political priorities could shape housing policy differently across individual nations across the UK too.”
