House price growth accelerates in Q2
The latest Property Market Index Review by London lettings and estate agent, Benham and Reeves, has revealed that the property market continued to build momentum during the second quarter of 2026, with UK house prices increasing by 1.1%, while London recorded a second consecutive quarter of positive growth.
The Benham and Reeves Market Index Review
The Benham and Reeves Property Market Index Review* is a quarterly accumulation of house price data from the top four existing indices, providing the most comprehensive view of UK and London house price performance.
It looks at where the average house price sits overall when taking into account mortgage approved house prices from Halifax and Nationwide, seller expectations via the Rightmove House Price Index, and sold prices from the UK House Price Index.
It also highlights how the gap has changed between buyers and seller expectation, as well as asking price and actual sales price, on a quarterly basis across London and the UK.
Current property values
Based on a geometric mean of all four existing data sets, the index from Benham and Reeves shows the average UK house price sat at £308,728 in Q2 of this year.
This marked a 1.1% quarterly increase, accelerating from growth of 0.5% during the first quarter of the year and marking a second consecutive quarter of positive house price growth.
The long-term view also remains positive, with the average UK house price sitting 1.2% higher when compared to Q2 2025.
In London, the average house price in Q2 2026 sat at £588,373. This marked a 0.4% increase for the quarter and a second consecutive period of positive growth.
However, the capital continues to lag when viewed on an annual basis, with the average London house price sitting -1.1% lower than in Q2 2025.
Market Gap Between Mortgage Approval Price (Buyers) & Asking Price (Sellers)
In Q2 2026, the market gap between the average mortgage approved price of a buyer (£288,449) and the asking price expectation of a seller (£376,151) sat at 30.4%.
This marked a widening of the gap from 28.7% during the previous quarter and a second consecutive quarterly increase.
With asking prices increasing at a greater rate than mortgage approved prices, the figures suggest that improving market momentum has continued to encourage greater confidence amongst the nation’s sellers when setting their asking price expectations.
In London, the gap between mortgage approved house prices (£540,903) and seller asking prices (£684,185) remained unchanged at 26.5%.
This follows three consecutive quarterly reductions prior to Q2 and suggests that, despite both asking prices and mortgage approved prices increasing, the balance between buyer affordability and seller expectations has remained broadly consistent.
Market Gap Between Asking Price (Sellers) & Sold Price (Buyers)
The latest index by Benham and Reeves shows that the difference between the average UK asking price and the average sold price widened during the second quarter.
Across the UK, the average sold price in Q2 2026 stood at £271,203, -27.9% below the average asking price of £376,151. This compares to a gap of -27.1% during the first quarter of the year.
In London, the difference between asking price and sold price also widened marginally, with the average sold price of £550,382 sitting -19.6% below the average asking price of £684,185, compared to a gap of -19.4% in Q1.
Director of Benham and Reeves, Marc von Grundherr, commented:
“The property market has continued to move in the right direction during the second quarter, with the rate of UK house price growth accelerating and London also posting a second consecutive quarter of positive growth.
There remains a clear degree of confidence amongst sellers, with asking prices continuing to climb, although the widening gap between asking and achieved prices nationally demonstrates that buyers remain considered in what they are willing to pay.
London continues to demonstrate its resilience. While values remain marginally lower on an annual basis, two consecutive quarters of growth suggest that the capital has regained some stability following the declines seen during the second half of last year.
As ever, realistic pricing remains key and sellers who recognise the balance between ambition and current buyer affordability will be best placed to secure a successful sale.”
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Breaking Property News 5/10/26
