Buyer activity is beginning to recover after the summer slowdown, with searches for homes now 7% higher than a year ago. But with sales agreed still down 6% and buyers’ purchasing power reduced by higher mortgage rates, accurate pricing and local expertise will be critical this autumn.
Searches for homes are 7% higher than a year ago, their strongest annual increase for 12 months
Sales agreed remain 6% lower than last year, although the gap is beginning to close
Higher mortgage rates have reduced buyers’ purchasing power by 9% since January
UK house price growth has slowed to 0.9%, down from 1.3% in June
Prices are flat or falling across much of southern England, while northern markets continue to record stronger growth
Buyers have plenty of choice, with 5% more homes for sale than a year ago
Agents who lead realistic pricing conversations will be best placed to turn returning demand into instructions and sales
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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)
Property type | Average house price June 2026 | Average house price July 2026 | Average house price August 2026 | Annual price change to August 2026 (£) | Annual price change to August 2026 (%) |
All property | £272,800 | £272,800 | £273,000 | £2,160 | 0.80% |
Flats/maisonettes | £192,200 | £191,800 | £191,800 | -£2,600 | -1.30% |
Terraced houses | £242,000 | £242,000 | £242,200 | £3,410 | 1.40% |
Semi-detached houses | £282,100 | £282,000 | £282,200 | £4,600 | 1.70% |
Detached houses | £458,300 | £458,100 | £458,700 | £3,770 | 0.80% |
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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.
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%.
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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.
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.
We try to make sure that the information here is accurate at the time of publishing. But the property market moves fast and some information may now be out of date. Zoopla accepts no responsibility or liability for any decisions you make based on the information provided.
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