Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Lloyds HPI: UK House Prices Fell Again in August, Regional Trends Diverge

UK house prices fell by 0.2% in August, following a 0.1% decrease in July, according to the latest Lloyds house price index. The average property price now stands at £298,468, down from £299,153 in July. On an annual basis, prices have dropped by 0.4%, marking the first year-on-year decrease since November 2023.

Northern Ireland recorded the strongest annual growth, with prices up 6.9% year-on-year to a new high of £231,245. Scotland also saw property prices rise by 3.5% over the past year, reaching an average of £223,437. In Wales, annual growth was 0.6%, with the typical property value now at £230,282.

In England, the northern regions experienced the strongest growth at 2.7%, with the average property price at £184,370. The North West saw prices rise by 2.0% to £248,675. Conversely, the South East experienced the largest annual decline, with prices down 1.6% to £381,729. Greater London followed with a 1.5% decrease to £534,177. The South West and Eastern England both recorded annual declines of 1.2%, with average prices of £298,807 and £331,410, respectively.

The Lloyds HPI report highlights that fewer homes are changing hands, with industry figures showing transactions at their lowest level since the start of 2024. The report also notes that average house prices remain around 25% higher than at the end of 2019, despite recent declines and increased interest rates.

For letting agents and inventory clerks, these regional trends and the overall slowdown in transactions may impact rental demand and property turnover. The report also points to ongoing economic uncertainty and affordability pressures as factors influencing current market conditions.