House prices fall by 0.2%, ONS data shows

The latest ONS Private Rent and House Price data, published today, has found house prices fell by 0.2% on a monthly basis, with annual growth slowing to 1.4%.

Average house prices increased by 1.4% to £273,000, in the 12 months to July 2026, provisional figures show. This is down from 1.5% in the previous 12 months.

While house prices stalled, private rent costs continued to increase with the average UK monthly private rent up 3.8% to £1,400 in the 12 months to August 2026, versus 3.7% in the prior 12 months.

Average rents rose 4% to £1,459 in England, 4.3% to £846 in Wales, and 1.1% to £1,013 in Scotland, in the 12 months to August 2026. In England, inflation was highest in the North East and North West at 5.8%, and lowest in the South East at 3%.

Average house prices increased to £293,000 (1.1%) in England, £215,000 (2.6%) in Wales, and £196,000 (2.3%) in Scotland, in the 12 months to July 2026.

“This data marks a turning point in house price growth,’’ said Chris Storey, chief commercial officer at Atom Bank.

“Given the latest Lloyds house price index - which is more up to date - has reported the first annual house price fall in three years, we are likely to see further falls play out in next month’s ONS data.

"Against the current backdrop, the market has been driven by those who feel moving is a necessity, rather than by aspirational buyers.”