House price growth has slowed to 1.3%, down from 1.7% a year ago, as sales agreed run 9% below last year’s levels, the latest Zoopla house price index shows. 2026 has registered a sharper-than-usual summer slowdown, which is largely down to elevated mortgage rates and political uncertainty.
The North East is bucking the trend entirely, with sales up around 4% on last year. This is primarily down to cost - with lower average house prices in the North East cushioning buyers by ensuring that the same rise in mortgage rates translates into a much smaller cash increase for buyers than elsewhere.
An increase in total homes for sale across eight of the UK's 11 regions means that buyers have more choice than a year ago almost everywhere - and real negotiating power - leading to lower house price inflation.
Higher borrowing costs are a key factor for many buyers - average mortgage rates declined from April's peak of close to 5% to around 4.65% in June, before ticking back up to around 4.75% in July as tensions in West Asia returned.
Since January, rate rises have added roughly £125 a month - £1,500 a year - to mortgage repayments for a typical UK home, with July's increase adding further to that cost.
Localised hotspots and cold spots
Almost three-quarters of local markets (76%) are registering fewer sales than a year ago over the past three months.
Warrington, Hull and Dundee are clear housing market hotspots, with a sustained increase in sales agreed and higher price growth than a year ago. At the other end of the scale, Bath, Oxford and Harrow have all seen fewer sales and have moved from positive price growth twelve months ago to flat or negative levels now. Harrow was already flagged as a market under pressure in April, when homes there were taking 65% longer to sell than a year before; this month's data shows that weakness has now fed through into prices as well.
House price growth has slowed to 1.3% overall, down from 1.7% last year. The average UK home has gained £3,400 in value over the past 12 months, and now sits at £272,800. This differs widely between regions, however, with a typical home in Northern Ireland gaining £9,610, and the North West £7,100 in the last year - while a typical London home has lost £3,270, and the South East is down £1,480.
In percentage terms, average homes in the North West have seen price growth edge higher from 3.2% to 3.5%, the North East from 2.6% to 3.1%, and Scotland from 2.8% to 3.1%. Over the same period, London has moved from modest growth (0.7%) into decline (-0.6%), and the South East has followed the same path, from 0.7% to -0.3%.
Outlook: a September pick-up, if rates hold
September is when sales typically register a second jump in the second half of the year, meaning sellers who get their pricing right now are most likely to benefit.
Looking at the past three autumns, the share of homes cutting their asking price by 5% or more consistently peaks in September - the same month sales activity typically recovers from its summer low. The autumn "bounce" isn't buyers spontaneously returning; it happens because sellers adjust their pricing to better align with what buyers are prepared to pay.
Homes still sitting at their spring asking price into October have historically missed that window. Almost a third (30%) of homes for sale today were listed back in Q2 and remain unsold with no price cut.
Richard Donnell, executive director at Zoopla, said: "This summer has seen a sharper slowdown than usual, with higher mortgage rates and political uncertainty both weighing on buyer confidence. But it's not all one-way traffic, sales are still getting done, house prices are still rising in most of the country, and buyers have more room to negotiate than they've had in some time.
"Conditions can vary sharply from place to place with almost three-quarters of local markets have seen sales fall over the past three months, but a quarter are bucking that trend entirely. Sellers should speak to a local agent who knows what's actually happening on their own patch, rather than relying on the national picture.
"For anyone who doesn't need to move, it's entirely reasonable to wait and see how things settle. But for those with a genuine need to sell, our data shows September is when the market typically turns, and pricing to meet buyers now is what tends to get deals done, rather than waiting to see what autumn brings."
