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

UK House Price Growth Stalls as Market Activity Remains Subdued

The Lloyds House Price Index for July reports that annual UK house price growth has slowed to its weakest rate since November 2023. Average property values remained broadly unchanged during the month, with prices just 0.1% higher than a year earlier.

According to the index, the average UK property price in July was £299,253, a decrease of £143 from June’s figure of £299,396. This keeps the average price just below the £300,000 mark.

Industry commentary highlighted that the market is not in crisis, but activity levels remain low. The report notes that transaction volumes are well below levels seen a year ago, and survey data continues to indicate subdued demand.

Affordability challenges have been a key feature of 2026 for both existing homeowners and first-time buyers. The report also points to steady interest rates and a recent fall in inflation, which may help support buyer confidence as the year progresses. However, lower mortgage applications and reduced lending over the previous quarter are expected to continue influencing market activity in the coming months.

The report further notes that economic recovery may vary by region, and that changing political priorities could shape housing policy differently across the UK. Rising mortgage costs and political uncertainty around property taxes have contributed to a lack of significant price movement, with London and the South East under-performing compared to less expensive regions.

For letting agents and inventory clerks, the current market conditions suggest continued subdued activity and stable property values, with affordability and lending trends remaining key factors to monitor.