UK house prices recorded their first annual decline in nearly three years, according to a report from The Times. The drop marks the end of a period of yearly growth that had held since late 2023.
The decline was led by London and the south-east of England, as reported by The Guardian. Data from Lloyds, cited by East Renfrewshire News, confirmed that the average UK house price fell on an annual basis for the first time since 2023.
The Times published the figures on Monday, 7 September 2026, based on the latest housing market data. The Telegraph also covered the development, describing it as the first fall in three years. No specific percentage change or average price figure was included in the reporting summaries.
The regional split is notable. London and the south-east, typically the most expensive parts of the country, saw the largest downward pressure. That pattern suggests weaker demand in higher-priced markets, though the reports did not provide a detailed cause.
The annual decline follows a period of relative stability in UK house prices. The last time prices fell on a yearly basis was in 2023, according to the multiple outlets covering the data. That earlier drop came during a stretch of high interest rates and affordability pressures.
Lloyds, one of the UK’s largest mortgage lenders, is the source of the underlying house price index. Its monthly report is widely watched as a gauge of housing market health.
What to watch next: whether the annual fall deepens in coming months or stabilises as mortgage rates and buyer sentiment shift.
