Lloyds House Price Index – October 2026
House prices in October 2026 were 1.2% lower compared to the same month a year earlier.
House prices fall in October as market remains subdued
• House prices fell by -0.6% in October, following a -0. 1% decrease in September
• The average property price is now £29 6 ,285 , compared to £29 8 ,167 in
September
• On an annual basis, house prices are -1.2% lower, the biggest fall since October
2023
• Northern Ireland continues to lead UK annual growth, though pace has slowed
Andrew Assam, Mortgages Director at Lloyds, said:
“UK house prices fell by -0.6% in October, a larger drop than in recent months, taking the average property price down to £296,285. Prices were also -1.2% lower than a year ago, the biggest annual fall since October 2023.
“Housing demand is currently being tested by a challenging economic backdrop. Renewed inflationary pressures, driven in part by the conflict in the Middle East, are keeping borrowing costs high and adding to the squeeze on household finances, making some buyers understandably more cautious.
“However, it’s important to put October’s fall in context. House prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates. The recent rise in energy and other household costs have added to the pressure on buyers, so some adjustment in prices is not surprising.
“Looking ahead, conditions are likely to remain subdued in the near term, but we don’t expect this to lead to a sustained period of falling house prices. With wages continuing to rise faster than property prices, the gap between earnings and house prices should gradually narrow, helping affordability to improve over time.”

