UK house prices fell 1.2% in October from a year earlier, their steepest annual decline since October 2023, according to the Lloyds House Price Index released Friday, November 6.
Prices declined 0.6% from September, following a 0.1% decrease the previous month. The standardized average property price was £296,285, compared with £298,167 in September.
Lloyds’ quarterly measure fell 0.5%. The lender says that comparison helps smooth the volatility in individual monthly readings.
Mortgages director Andrew Asaam linked subdued demand to higher borrowing costs and pressure on household finances. He expected near-term conditions to remain weak but did not forecast a sustained period of falling prices.
The national decline masked regional differences. Northern Ireland recorded annual growth of 4.4%, while Scotland rose 2.8% and Wales 1.6%. Greater London recorded a 3.1% annual decline.
The results differed from another lender’s October survey. Nationwide reported unchanged monthly prices and annual growth of 0.5%, illustrating why individual housing indexes should be identified rather than treated as interchangeable market totals.
Previously called the Halifax House Price Index, the series adopted the Lloyds name in July. Lloyds says the methodology is unchanged and already uses both lenders’ mortgage data.
The release measures October prices. It is separate from any forecast of future property values.
Sources: - Lloyds: https://www.lloydsbank.com/assets/media_centre/pdf/october-2026-lloyds-house-price-index.pdf - Reuters: https://www.reuters.com/world/uk/uk-house-prices-post-biggest-annual-fall-since-october-2023-lloyds-says-2026-11-06/