UK House Prices Rise, London Falls
UK House Prices Rise, London Falls
Anonymous
Key Points
1
London’s annual decline marked the capital’s 11th consecutive month of falling average house prices, and only 12 of its 32 boroughs recorded increases.
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Beyond the worst-performing London boroughs, Rutland, Aberdeen and the Shetland Islands were also among the 10 UK areas with the largest annual price declines.
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Kirklees in Yorkshire and the Humber recorded an average annual increase of £11,994, while Market Harborough in Leicestershire gained £27,108, bringing its average property price to £347,010.
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Kent’s prices rose 0.2% between June and July 2026, an increase of about £563, and 11 of the county’s 13 local-authority areas recorded annual price rises.
UK house prices rose 1.4% over the year to July 2026, reaching an average of £273,000, but London bucked the trend with a sharp 3.3% decline. Rightmove reported the divergence reflects a widening gap between the capital and the rest of Britain, with only 12 of London's 32 boroughs recording gains while northern regions surged ahead.
London's fall marked the capital's 11th consecutive month of price drops. Westminster led the decline with a 20.7% annual fall, while City of London, Tower Hamlets, and Kensington and Chelsea also posted double-digit declines. Meanwhile, northern areas like Trafford in Greater Manchester saw values jump by roughly £35,000 annually.
London Suffers Longest Price Decline Streak
London's housing market has deteriorated for 11 straight months. Westminster recorded the steepest drop at 20.7%, followed by the City of London, Tower Hamlets, and Kensington and Chelsea, all suffering substantial declines. Rightmove found only 12 of the capital's 32 boroughs managed to post annual gains, showing how widespread the weakness has become across the city.
Beyond London's core, other UK regions also struggled. Rutland, Aberdeen, and the Shetland Islands ranked among the 10 areas with the largest annual price declines nationwide. The disparity underscores London's unique challenges, as the capital continues to underperform while much of Britain recovers.
Northern England and Kent Lead the Recovery
While London fell, northern areas posted impressive gains. Kirklees in Yorkshire and the Humber jumped £11,994 annually, and Market Harborough in Leicestershire surged £27,108 to reach an average price of £347,010. Trafford in Greater Manchester saw values climb roughly £35,000, far outpacing the national average increase.
Kent emerged as another strong performer, with prices rising 1.5% annually to £346,904. Rightmove reported that 11 of Kent's 13 local-authority areas recorded annual gains, led by Gravesham, Canterbury, and Swale. Even month-on-month, Kent posted a 0.2% rise between June and July, adding about £563 to average property values.
Buckinghamshire Shows Extreme Volatility Within County
Buckinghamshire illustrated just how fragmented the property market has become. Some areas surged while others collapsed within the same county. Burnham North, Taplow, and Dorney posted a 21.5% annual increase, while Granborough, Stewkley, and Great Brickhill fell 19.2% in the same period. The 40-point gap reveals micro-level price dynamics that average figures often hide.
September Sees First Monthly Rise Since May
After months of declines, Rightmove found UK house prices increased for the first time in four months in September. Average asking prices for newly-listed homes rose 0.7% month-on-month to £367,440, marking a return to growth after a rough summer. This increase beat the ten-year September average of 0.5%, suggesting an early autumn bounce in buyer interest.
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