Average UK house prices increased by 1.4% in the 12 months to July 2026, up from the revised estimate of 1.5% in the 12 months to June 2026, according to the latest UK House Price Index from the Office for National Statistics (ONS).
On a non-seasonally adjusted basis, average house prices in the UK increased by 0.7% between June 2026 and July 2026, compared with an increase of 0.8% from the same period 12 months ago (June 2025 and July 2025).
Iain McKenzie, CEO of The Guild of Property Professionals, said while the pace of house price growth has eased, the continuation of prices rising is “significant given the pressures households are facing”.
He explained: “As we move into autumn, the key question is whether the usual seasonal uplift in activity can gather momentum while mortgage rates remain high and inflation being pushed higher by fuel and energy costs.
“The housing market is having to operate against a much more volatile economic backdrop than we would normally expect at this time of year.
“There are some encouraging signs. Consumer confidence has improved and we are seeing renewed buyer interest as people return from the summer and revisit moving plans. Political reassurance around property taxation also appears to have helped sentiment, although it is far too early to say whether the improvement in demand will prove lasting.
“Ultimately, affordability remains the defining factor. Buyers are still active, but they are more cautious and much more sensitive to the cost of borrowing. That means we should expect an autumn market where good-quality, realistically priced homes attract attention, while properties that stretch buyers’ budgets may take longer to sell.
“The market isn’t standing still, but neither is it operating in normal conditions. A resilient autumn is possible, but activity is likely to be measured rather than spectacular.”
He added: “Although we are not seeing much evidence of a ‘Burnham Bounce’, we have registered more proceedable buyers lately who are aware they are in the driving seat so are taking their time to identify best opportunities before negotiating hard.”
Ian Futcher, financial planner at Quilter, said the continued price growth on the backdrop of affordability challenges buyers currently face “suggests demand has held up”.
Meanwhile he noted these figures reflect transactions agreed several months ago and may not be a true reflection of the pressures beginning to build in the mortgage market.
He said: “Several major lenders have increased mortgage rates this week as swap rates and funding costs have moved higher, making borrowing more expensive for prospective buyers and those approaching remortgage. The longer the US and Iran conflict drags on and subsequently increases inflation the longer rates may remain high.”
“Looking ahead,” he added, “much will depend on whether this recent upward pressure on mortgage pricing proves temporary or becomes a more sustained trend.
“If lenders continue to raise rates despite the Bank holding fire, the market could face renewed strain as affordability deteriorates further. The underlying demand for homeownership remains strong, but higher borrowing costs risk making the path onto, or up, the property ladder even more challenging for many households.”
Nathan Emerson, CEO of Propertymark, commented: “The year to date has been a considerable rollercoaster for many households, with rising costs putting increasing pressure on household finances.
“Consumers have rightly shown caution around longer-term, high-value borrowing, with the impact being felt across the housing market.
“As we head into the autumn months, it’s encouraging to see strength within the housing market. Across the year, we have seen many key indicators demonstrate just how challenging it has been for would-be home movers in terms of affordability.
“Despite consumer headwinds, the market has broadly remained resilient in terms of average house prices across many regions. There are still challenges yet to overcome.”
Commenting on the Consumer Price Index, which rose by 3.1% in the 12 months to August 2026, up from 2.9% the previous month, Emerson added:
“The year to date has been a considerable rollercoaster for many households, with rising costs putting increasing pressure on household finances. Consumers have rightly shown caution around longer-term, high-value borrowing, with the impact being felt across the housing market.”
