Zoopla House Price Index September 2026

UK house price growth slows to 0.8%

Although the UK’s average house price continues to rise, it’s rising at a slower rate than we have seen in previous months. Values increased 0.8% in the 12 months to August, compared to 0.9% in July and 1.3% in June. The average house price in the UK is now £273,000.

Uncertainty in the Middle East and higher mortgage rates are tempering the usual autumn rebound in housing activity. 

But buyers haven’t disappeared - they are simply more cautious and are very sensitive to pricing. They’ll make an offer if they can afford what’s being listed, with a 5% greater choice of homes for sale compared to last year maintaining the buyers’ market.

Download the Zoopla House Price Index, September 2026 (PDF, 436kB)

Sales down by 9% as mortgage rates hit a 3-year high

Financial pressures continue to affect the sales market. Borrowing costs are at their highest rate for three years, up from 4% at the start of the year to 5.2%.

The average homebuyer now spends an extra £150 a month on mortgage repayments (£1,800 a year). This is causing people to put their moving plans on hold, or wait longer until a home within their budget becomes available. 

The result of these factors constraining buyer activity is 9% fewer sales agreed when comparing this year to last. Although borrowing costs are likely to remain high, we expect house prices to increase 0.5% by the end of the year. Despite these conditions, we’re still on course for annual sales to be close to 1.1 million.

The North-South house price split continues

Our data shows above-average annual house price inflation in Northern Ireland (+6.3%), the North West (+3.1%), Scotland (+2.6%), the North East (+2.3%), Wales (+1.8%), the West Midlands (+1.6%) and Yorkshire and the Humber (+1.4%).

Cities in these regions are also outperforming their southern counterparts. For example, house prices in Belfast increased 5% in the last year, followed by Liverpool (+4.3%), Newcastle (+2.7%) and Glasgow (+2.6%).

It’s a different story in the south. House prices have fallen in London (-1%), the South East (-0.7%), the East of England (-0.3%) and the South West (-0.3%). The only exception was the East Midlands, where annual house price inflation is +0.6%.

Of the six UK cities where house prices are falling, five are in the south: Bristol, Portsmouth, Oxford, Cambridge and Bournemouth. Bournemouth remains at the bottom of the city table, with annual house price deflation of -2.1%.

Houses are the best performing property type

The type of property a vendor is trying to sell should influence valuations as much as its location.

The price of houses is more resilient than flats, with the cost of a house rising in 8 out of 11 UK regions. Semi-detached houses are most likely to hold their value – rising 1.7% in price over the last year. 

The price of houses is rising fastest in the North West (3.6%), followed by Scotland and the North East. The price of houses has stalled across much of southern England, as buyers balance higher property values with increased borrowing costs. 

In contrast, the price of flats is falling in 9 out of 11 UK regions, with Scotland and the North East the notable exceptions. The average flat now costs £191,800 – down 1.3% or £2,600 less than a year ago. 

It’s critical for agents to work with vendors to price properties realistically, and to back valuations with data. Zoopla customers can access a wealth of relevant data for any property in the UK through our Zoopla Pro platform, to help with conversations in the living room.

Homes selling fastest in more affordable areas

Sellers in the south are waiting longer to secure buyers than their northern peers, with rising mortgage costs having more impact, creating hesitancy.

Our data shows only 30% of sellers in London find a buyer within three months. The capital is joined by the East of England, the South East and the South West as regions where more than 60% of homes remain unsold after three months. 

In contrast, Scotland’s upfront information and ‘offers over’ system facilitates a speedier sales process. In Scotland, 75% of homes listed between April 2026 and June 2026 found a buyer within three months. 

Buyers in England’s northern regions are seeing the benefit of lower house prices and relative affordability. Homes for sale in the North East and the North West are in demand, with a 50% or greater chance of a buyer being found within three months. 

Sales are also happening more quickly in Yorkshire and the Humber, the West Midlands and Wales, where the chances of finding a buyer within three months is 40% or greater.

What this means for agents

There are four key takeaways for agents who want to stay ahead and keep sales moving:

• Set realistic pricing expectations: Manage expectations and emphasise the importance of setting a realistic asking price from day one. This will avoid vendor disappointment and reductions later on.

• Prove how your market is performing: Show vendors what homes like theirs are currently selling for. Use ZooplaPro platform to evidence how long overpriced homes stick around on the market

• Promote asking price reductions: promote newly-reduced asking prices to your buyer database, as previously out-of-reach properties may move to within their budget.

• Give chains security by prequalifying buyers: Successful sales are only as good as the buyer’s ability to proceed. Ensure mortgage affordability is verified at the start of the search. 

Buyers have 5% more homes to choose from now compared to last year, but they also have less money to spend.  

Mortgage advice lies at the heart of affordability but agents are instrumental in closing the gap between buyer budgets and perceived property values. Legitimacy comes when you justify valuations with local data and recently sold prices.

Outlook

The government’s upcoming Autumn Budget and the Bank of England’s next base rate decision will set the tone for the property market as we had towards winter. 

An increasing number of homes for sale will help keep house price inflation in check but mortgage rates will determine if buyers rediscover borrowing confidence.

Agents who offer useful but realistic advice to both vendors and buyers will be best placed to avoid sales stalemate.

About the Zoopla House Price Index

The Zoopla House Price Index (HPI) tracks the change in achieved sales price of homes (not asking prices). The index uses sold prices, mortgage valuations and data for recently agreed sales with more input data than any other index. The methodology is designed to accurately track the change in pricing for UK housing. It’s revisionary and non-seasonally adjusted.

Download the Zoopla House Price Index, September 2026 (PDF, 436kB)

Notes on this month’s data:

• Market activity data covers the four weeks to 20 September 2026 and is compared with the same period in 2025.

• Mortgage rate comparisons are based on the average rate for a new 75% loan-to-value, five-year fixed mortgage across large banks.

• Mortgage affordability estimates assume a typical buyer purchasing with a 75% loan-to-value mortgage over a 27-year term. They compare a five-year fixed mortgage rate of 4% in January 2026 with 5.2% in September 2026.

 Source: Zoopla calculations based on buyer enquiry data.