UK House Prices Flatline Amidst Economic Uncertainty
Northern Ireland sees robust growth as London and the South East experience declines; mortgage rates edge higher following Middle East events.
Carla Rooney
Average UK house prices showed no growth in July, remaining flat compared to the previous month.
Market stability held even as buyers and sellers faced an uncertain economic backdrop this year, Amanda Bryden confirmed.
Mortgage rates edged higher again after easing earlier in the summer. The average two-year fixed residential mortgage rate hit 5.63% on Friday, with the average five-year deal at 5.67%.
Affordability remains a challenge for many would-be buyers, Amanda Bryden stated. Mortgage rates edged higher again after easing earlier in the summer, following recent events in the Middle East.
The Bank of England cautioned that inflation was set to rise by the end of the year due to the Iran war. The Bank kept its base rate unchanged at 3.75% last week.
The market is not in crisis, but the green shoots that flickered briefly in early 2026 have wilted.
It signaled readiness to hike if the conflict and its effects on prices were prolonged. Despite national stagnation, significant regional disparities persist across the UK.
In England, the north-east reported an annual growth of 2.8%, with average prices reaching £182,488. The north-west saw a 2.1% rise, averaging £247,836.
Conversely, prices in the South East fell 2% year-on-year. Scotland experienced a 3.6% increase in prices over the same period.
In southern areas, a glut of supply attracts too few serious buyers, steadily dragging down prices, Nicholas Finn claims.
In northern England, however, the forces of supply and demand are more balanced. The buzz surrounding No 10 North and the prospect of job creation and government investment boost sentiment and support the upward trajectory in prices, Finn claims.
Amanda Bryden indicated that Average house prices have remained relatively stable for almost two years, moving within a narrow range and sitting just 0.5% higher than they were in November 2024. This steadiness was unexpected, given the economic uncertainty sparked by the war in Iran.
Average house prices have remained relatively stable for almost two years, moving within a narrow range and sitting just 0.5% higher than they were in November 2024, Amanda Bryden noted.
This steadiness was unexpected, given the economic uncertainty sparked by the war in Iran, Bryden claims.
The market is not in crisis, but the green shoots that flickered briefly in early 2026 have wilted, Anthony Codling claims.
Market activity and house prices will remain relatively stable over the remainder of the year, Amanda Bryden anticipates.
Developments will be shaped by how mortgage rates respond to the outlook for inflation and wider household confidence, she added.
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