London's 1.3 Percent Price Fall Widens The UK North South Housing Divide

The UK's newest house-price data point to a widening local split, with London and the South East falling while Northern Ireland, Scotland and northern English regions still show annual growth.

July Prices Were Almost Flat

Lloyds and Halifax-linked reporting put the July average UK house price around GBP 299,253, little changed from June and only 0.1 percent higher than a year earlier. That is the weakest annual growth reading since late 2023 and shows affordability is holding back demand.

London Is The Negative Signal

Greater London was reported down 1.3 percent annually and the South East down about two percent, while Northern Ireland rose 7.4 percent, Scotland 3.6 percent and Wales 1.6 percent. The split is local enough that a single UK average can mislead both buyers and sellers.

Rents Add A Second Pressure

ONS data for June showed average UK private rents up 3.3 percent annually, with London still the most expensive region by rent level despite slower inflation. Buyers waiting for lower prices still face rent costs while mortgage rates remain elevated.

What Buyers Should Watch

London buyers should compare asking-price cuts, mortgage affordability and local rent levels before waiting too long. In stronger northern markets, the risk is less price fall and more limited quality supply.

Outlook

The UK's next signal is whether autumn mortgage pricing improves demand. London sellers need realistic asking prices, while stronger northern markets can still support well-priced family homes.

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