12 November 2026Admin

House Prices by Region UK: Where Prices Are Rising and Falling (Latest ONS Data) | FLIQ

UK house prices by region, from the latest ONS figures: the North East leads with 3.2% annual growth while London falls 2.2%. Region-by-region table, rents and what's driving the north–south divide.

Are UK house prices still rising?

Only just. The average UK home cost about £273,000 in August 2026, up 0.9% on a year earlier — slower than inflation, so prices are falling in real terms. In London they're down 2.2% on the year.

With the Bank of England raising rates to 4% in November, growth is likely to stay weak into 2027. But a shortage of homes is stopping anything like a crash. Here's what's going on, in plain English.

ℹ️ Different indices give different numbers — ONS uses completed sales, lenders use their own mortgage approvals, portals use asking prices. We lead with the official ONS figure and show the others alongside. Sources are listed at the bottom.

The latest numbers

Average UK price (ONS, Aug 2026)£273,000
Annual change (ONS)+0.9%
London, annual change (ONS)−2.2%
Nationwide, annual (Oct 2026)+0.5%
Halifax, annual (latest)−1.2%
Bank of England base rate4.00%
CPI inflation (Sept 2026)3.5%

ONS figures are provisional and usually revised. Checked 12 November 2026.

Ten years of UK house prices

Prices climbed steadily through the 2010s, jumped during the pandemic, then flattened once mortgage rates rose. 2026 has been a year of very slow growth.

Chart: average UK house price, 2016–2026 (UK HPI)

Source: HM Land Registry / ONS UK House Price Index, August 2026.

Why has house price growth slowed?

Three things are holding prices back right now.

Interest rates are going up again

On 5 November 2026 the Bank of England raised Bank Rate from 3.75% to 4% — its first rise since August 2023. Higher rates mean higher mortgage payments, so buyers can borrow less.

⚡

Inflation is back above target

Inflation reached 3.5% in September, pushed up by energy prices. That squeezes household budgets and leaves less room for a bigger mortgage.

Affordability is stretched

Prices are still high compared with incomes, especially in London and the South East. That's why London is falling while cheaper regions hold up better.

So why aren't prices crashing?

The forces that pushed prices up for decades haven't gone away.

Not enough homes

The UK has built fewer homes than it needs for years. Limited supply puts a floor under prices.

Rents are high

When renting costs as much as a mortgage, many renters keep trying to buy — keeping demand going.

Few forced sellers

Crashes usually need lots of people forced to sell. Most homeowners can sit tight rather than cut their price.

Wages are rising

Slowly growing incomes gradually catch up with prices, improving affordability over time.

Will house prices fall in 2027?

Forecasters disagree, and most have become more cautious since rates started rising again.

Savills now expects a 1.5% fall in 2027, with London down 3.5% and the North West still up 1%. It had previously forecast growth, and changed its view because of higher inflation and mortgage rates staying above 5%.

Others are more positive. The Office for Budget Responsibility and several agents still pencil in modest growth of around 1.5–3%.

The honest summary: flat to slightly down nationally, with big regional differences — and the path of mortgage rates will decide which way it tips.

2027 forecasts (UK average)

Savills (Nov 2026)−1.5%
Connells+1.5%
Hamptons+2%
OBR+2.5%
Knight Frank+3%

Forecasts are opinions, not predictions you can bank on. Most of these were made before the November 2026 rate rise.

What it means for you

Sellers

Price realistically from the start. In a flat market, overpriced homes sit and then need cutting — which often costs more than pricing right first time.

Buyers

Slow growth gives you more room to negotiate. Get a mortgage agreement in principle early, and stress-test it for rates going higher.

Landlords

Higher rates hit buy-to-let mortgages hardest. Check your remortgage date now and run the numbers at today's rates.

Agents

Fewer, slower sales mean every cost per instruction matters. It's a good time to look hard at what you spend on portals — see why portal fees keep rising.

Questions people ask

Are UK house prices going up or down?

Slightly up on the official measure — 0.9% in the year to August 2026 (ONS). Some lender indices already show small annual falls, and London prices are down 2.2%.

What is the average house price in the UK?

About £273,000 in August 2026, according to the ONS / HM Land Registry UK House Price Index.

Will house prices crash in 2027?

A crash looks unlikely: there's a shortage of homes and few forced sellers. Forecasts range from a 1.5% fall (Savills) to around 3% growth, so flat to slightly down is the most common view.

How does the interest rate rise affect house prices?

Higher Bank Rate usually feeds into higher mortgage rates, which reduces how much buyers can borrow and slows price growth. Read more in interest rates and house prices.

Where are house prices rising fastest?

Cheaper regions in the North and Scotland have generally held up best, while London is falling. See house prices by region.

Is now a good time to sell?

Trying to time the market rarely works. If you're selling to buy, a flat market affects both sides of your move. See is now a good time to sell?

Sources

A slower market? Cut costs, not reach

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