UK house prices fell 0.4% year-on-year in August 2026, according to Lloyds data, marking the first annual decline since November 2023 and missing economists’ expectation for 0.2% growth. Prices fell 0.2% from July, versus forecasts for a 0.1% increase, while July’s initial reading of 0.1% monthly growth was revised to a 0.1% decline. The average property price stood at £298,468. Lloyds mortgages director Andrew Asaam said global events, including the U.S.-Iran war, had pushed up inflation and borrowing costs, prompting some buyers to delay purchases. Sellers have generally avoided sharp price cuts, instead waiting for better offers. Regional annual growth was strongest in Northern Ireland at 6.9%, followed by Scotland at 3.5%, the North East at 2.7% and the North West at 2.0%; the South East and Greater London recorded declines of 1.6% and 1.5%, respectively. Nationwide Building Society reported contrasting annual growth of 1.6% and monthly growth of 0.2% in August. Capital Economics expects prices to broadly flatline during the final four months of 2026, while official data showed annual growth slowing to 2.0% in June from 3.0% in May.