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.

London Remains Only UK Region with Falling House Prices

London is currently the only region in Britain where house prices continue to decline, according to analysis by House Buyer Bureau. The property firm forecasts that the average home in the capital could lose almost another £5,000 in value before the end of the year if current market conditions persist.

House Buyer Bureau analysed the latest UK house price index data, calculating the average monthly rate of house price growth across Britain over the last 12 months. Their findings show that while house price growth has stagnated in most regions, London is the only area to have recorded monthly house price falls during this period.

The analysis indicates that the North East experienced the strongest average monthly house price growth at 0.8%, followed by Yorkshire and the Humber and the North West at 0.6%. The West Midlands and East Midlands both recorded 0.5% growth. Across England as a whole, house prices increased by an average of 0.3% per month, while the South East remained flat at 0%. In contrast, London saw house prices decline by an average of -0.2% per month.

Using the previous 24 months of house price movements, House Buyer Bureau forecasts that London’s average house price will fall from the current average of £552,655 to £547,889 by December 2026. If this forecast is realised, it would represent a further decline of -0.9%, or £4,766, by the end of the year. The analysis also notes that the average London home has lost almost £21,000 since reaching its recent peak of £568,801 in July 2025.

These trends are relevant for UK letting agents and inventory clerks monitoring property values and market conditions in the capital, as ongoing price declines may impact rental yields, landlord decisions, and tenant turnover.