UK House Prices Flat in July as Annual Growth Slows to 0.1%, Weakest Since 2023

UK house prices were flat in July at £299,253, with annual growth of just 0.1% — the slowest pace since November 2023, the rebranded Lloyds index shows.

The average UK home cost £299,253 in July — exactly what it cost in June, and only 0.1% more than a year earlier. The figures, published on 7 August in the Lloyds House Price Index, mark the weakest annual growth since November 2023.

Prices have stalled, not slumped

Zero monthly movement is not a crash. It is a market holding its breath. Amanda Bryden, head of mortgages at Lloyds, said housing activity remains "sensitive to borrowing costs", noting that mortgage approvals and completed transactions rose modestly in June after a sharper decline in May. Her forecast for the rest of 2026 is deliberately unexciting: "we expect market activity and house prices to remain relatively stable over the remainder of the year."

That leaves the UK in an unusual position among large European markets. Spain is posting double-digit annual growth and Hungary is still in the low teens, while British prices have gone essentially nowhere in twelve months.

The yield side of a flat market

For income-focused buyers, a price plateau is not automatically bad news. Glopra's market data currently puts the UK national average at around $3,850 per square metre with a gross rental yield of 7.35% (snapshot: 23 July 2026) — one of the stronger rental returns among the European markets we track. When capital growth is close to zero, rental income becomes the entire return, which makes the rent side of the ledger the number to watch through the autumn.

The other variable is the Bank of England. Any move in the base rate feeds quickly into a market this rate-sensitive — Bryden's own commentary ties the June recovery in approvals directly to borrowing costs.

One index, new name

A housekeeping note for anyone tracking the data: from July 2026 the long-running Halifax House Price Index is published as the Lloyds House Price Index. The methodology is unchanged, so the series — and its verdict of a becalmed market — remains directly comparable with previous years.

Data in this article: Lloyds Bank House Price Index, 7 August 2026; Glopra Market Data, snapshot 23 July 2026.

Sources: Lloyds Bank House Price Index https://www.lloydsbank.com/media-centre/house-price-index.html

Market data: United Kingdom