UK House Price Index Update: October 2026

The latest UK House Price Index is in, and house prices are still rising, but at a slower pace than earlier this year.

According to the latest figures from HM Land Registry, published on 21 October 2026, the average UK house price reached £273,000 in August, following a 0.3% increase compared with July. Prices are also 0.9% higher than a year ago, although annual growth has slowed from a revised 1.2% in July. This marks the fourth consecutive month of slowing annual house price growth.

But the national average doesn’t tell the whole story. Some regions are seeing stronger growth, while others are experiencing falling prices. Here’s what the latest figures tell us about the UK property market, and what they could mean if you’re thinking about buying or selling.

What’s happened to UK house prices?

The latest House Price Index shows that:

• Average UK house price: £273,000

• Monthly house price change: +0.3%

• Annual house price change: +0.9%

• Annual growth in July: +1.2% (revised)

While prices increased slightly between July and August, annual growth has continued to slow.

In fact, the average UK property is now worth around £2,000 more than it was in August 2025. This suggests that house prices are continuing to grow, but at a more modest pace than we’ve seen in previous months.

It’s also worth remembering that the UK House Price Index is based on completed property transactions rather than asking prices. The August figures were published in October, reflecting the index’s two-month reporting schedule.

What’s happening to house prices in England?

The average property price in England reached £294,000 in August 2026. That’s a monthly increase of 0.2%, with prices now 0.4% higher than a year ago. However, there’s a significant difference in how individual regions are performing.

House prices by region

The North East recorded the strongest annual house price growth in England, with prices rising by 3.2%.

The North West also performed relatively well, with prices increasing by 2.2% compared with August 2025.

At the other end of the scale, London saw the largest annual decline, with average prices falling by 2.2%.

The South East also recorded a fall of 0.8%, while prices in the South West remained unchanged compared with last year.

These differences highlight why understanding your local property market is so important. National trends can give you a useful overview, but they won’t necessarily reflect what’s happening in your area.

What’s happening to house prices in London?

London continues to stand out from the rest of the UK property market. The average London property is now worth £554,430, down 2.2% compared with August 2025.

However, prices actually increased by 0.7% between July and August, suggesting some month-on-month improvement.

One of the biggest factors behind London’s annual decline is the performance of flats. According to the latest figures, flat prices in London have fallen by 5% over the past year, while average prices for houses have increased.

With flats accounting for around half of all property sales in London, their performance has had a significant impact on the capital’s overall figures.

For anyone buying or selling in London, this is a good reminder that property type can be just as important as location when looking at house price trends.

Which property types are performing best?

The latest figures also reveal some interesting differences between property types across the UK.

Semi-detached houses recorded the strongest annual growth, with prices increasing by 2.1%.

Terraced properties also saw relatively strong growth of 1.8%, while detached homes recorded a smaller increase of 0.7%.

Flats and maisonettes were the only property type to see an annual decline, with average prices falling by 1.6%.

Of course, these are national averages. Demand for different types of homes will vary depending on location, price and what buyers are looking for.

Are more homes being sold?

The latest figures suggest property transaction activity slowed slightly in August.

According to HMRC, an estimated 95,000 residential property transactions took place across the UK during the month, on a seasonally adjusted basis.

That’s:

• 1.5% fewer transactions than July 2026

• 1.9% fewer transactions than August 2025

Mortgage approvals also fell.

The Bank of England reported 54,900 mortgage approvals for house purchases in August, compared with an average of 60,100 over the previous six months.

These figures suggest that activity has eased, although one month’s data doesn’t necessarily indicate a longer-term trend.

What does this mean for buyers?

If you’re thinking about buying a home, the latest figures suggest that house price growth is becoming more modest. Average UK prices increased by just 0.3% in August, while annual growth has slowed to 0.9%.

But what’s happening in your chosen area matters much more than the national average. For example, prices are still increasing in regions such as the North East and North West, while London and the South East have seen annual declines.

It’s also worth looking at the type of property you’re buying. Flats have experienced different price trends from houses, particularly in London.

The key is to research recent sold prices, understand your budget and compare properties carefully before making an offer.

What does this mean for sellers?

For sellers, the latest figures show that house prices are still rising nationally, but growth has slowed. That doesn’t mean homes aren’t selling. However, it does reinforce the importance of getting your asking price right from the start.

Buyers are comparing properties, considering mortgage affordability and looking closely at what they’re getting for their money. If you’re planning to sell, understanding how similar properties have performed in your local area is a good place to start.

A realistic asking price, strong property photography and a well-presented home can all help attract interest.

Not sure what your property could be worth? You can book your free valuation with Purplebricks to get a clearer picture of your local market.

The bottom line

The latest UK House Price Index shows a property market where prices are still increasing, but growth is slowing. With the average UK home now worth £273,000, prices are 0.9% higher than a year ago.

However, regional differences remain significant. The North East continues to lead annual growth in England, while London and the South East have seen prices fall compared with last year.

For buyers, this makes researching the local market particularly important. For sellers, it means setting a realistic asking price based on what similar homes are actually selling for.

Whether you’re thinking about selling now or simply curious about your home’s current value, book your free valuation with Purplebricks to find out what your property could be worth.