UK house prices fell 0.6% in October as borrowing costs weighed
Original report:
Lloyds figures reported in November 2026 showed UK house prices falling for a fourth consecutive month, with London recording the largest annual decline. Mortgage rates near 6% added pressure on buyers, while other housing indicators pointed to weaker activity.
UK house prices dropped 0.6% in October 2026, the sharpest monthly fall since August 2023, according to Lloyds figures reported by the Guardian on 6 November. The average property price reached £296,285, down 1.2% annually. Analysts had expected a 0.1% monthly increase, but the decline extended a run of falls to four months.
Moneyfacts put average two-year and five-year fixed mortgage rates at 5.97% and 5.99%, respectively. The report followed a Bank of England rate increase to 4%. Greater London registered a 3.1% annual price decline, while Rightmove reported buyer demand down 10% and agreed sales down 9% amid expensive borrowing and increased housing supply.
The figures showed differing regional and lender assessments rather than a uniform market picture. Annual price growth remained relatively strong in Northern Ireland, Scotland and Wales, while southern England faced greater pressure. Nationwide separately reported unchanged October prices, underscoring that Lloyds’ monthly decline was not replicated across both lenders’ measures.
Source
the Guardian — 6 November 2026
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