Price growth remains flat as buyers get more choice amidst higher mortgage rates

Zoopla reported a modest 1.3% growth in UK house prices for July 2026. This is lower than the 1.7% growth recorded last year. While the price of an average UK home has increased by £3,400 this year, the average price of a home in London has dropped by £3,270. However, as the most expensive region in the country, the average asking house price in London at £676,248 is nearly 82% higher than the national average of £372,359.

Key highlights from July 2026

• UK house price growth slowed to 1.3%
• Average house price in London dropped by £3,270
• Number of homes available for sale still close to a 12-year high
• Number of sales agreed is 9% lower than last year
• Mortgage rates back up to around 4.75%

Summer heatwaves stall home moving plans

According to Rightmove’s latest house price index, the summer heatwaves in May, June and July caused a temporary drop in buyer demand of 8% and 6% and 4% for the respective months. Also, due to the political uncertainty prior to Andy Burnham taking charge asof the PM, new buyers chose to wait.

Why correct pricing is important

Market activity is expected to pick up in the coming Autumn months, but accurate pricing will remain a key strategy for sellers. Nearly three-quarters (74%) of all home sales this year went through successfully without requiring a price change. Homes that require a price correction spend an average of 127 days on the market, compared to just 36 days for homes that need no price reduction.

You can use our free valuation tool for an accurate appraisal of your London property.

Haringey and Camden lead price growth in London

Within London, Haringey recorded the highest monthly growth of 2.3% as the average house price in the borough reached £725,484. This strong performance was followed by Camden and Islington, where prices appreciated by 1.9% and 1.3% respectively. In Bromley, the average house price was up by 1.1%, whereas Southwark reported a growth of 0.9%.

BoE holds interest rate as inflation drops

At its latest Monetary Policy Committee (MPC) meeting on 30 July, the Bank of England (BoE) held its current Bank Rate at 3.75%. BoE has held the base rate at this level since December last year through five consecutive MPC meetings. The decision to hold the base rate came as consumer price inflation dropped to 2.6% in June.

International property events by Benham and Reeves

Our international offices wrapped up several London property events in July. Our Hong Kong office led the showcase of two South East London developments, including Kidbrooke Village and Royal Arsenal Riverside, followed by personalised London property lettings consultations. Our teams in Malaysia and Singapore also held advice clinics for property investors and landlords, followed by an exclusive showcase of TwelveTrees Park in Singapore.

In Tokyo, our Head of Japan Desk, Yoshi Tsuji, held a special London property seminar for Japanese clients. In India, we held an exclusive London property event in Bangalore to showcase Kennington’s Oval Village and The Exchange in Watford.

We also have several exciting events coming up in August, so stay tuned for our latest updates. You can also reach out to any of our London branches to learn more about buying, selling and letting a London property.