UK house price growth slowed to 0.9% in the year to July 2026, down from 1.3% in June, as higher mortgage rates continued to reduce buyer affordability, according to Zoopla.

The average UK home is now valued at £272,800, £2,540 higher than a year earlier. Flats and maisonettes recorded the weakest performance, with values falling 1.6% annually, while semi-detached homes saw the strongest growth at 1.6%.

Richard Donnell, Executive Director at Zoopla, said: “The latest data show the first signs of that autumn pick-up beginning to emerge. However, buyers have plenty of homes to choose from.”

Buyer activity is showing early signs of recovery, with searches for homes 7% higher than a year ago, the strongest annual increase for 12 months, although agreed sales remained 6% lower. The number of homes available for sale was also 5% higher.

Higher mortgage rates have reduced purchasing power by 9% since January 2026, according to Zoopla. A buyer able to borrow £200,000 at the start of the year could now borrow around £182,000 for the same monthly repayment.

The impact is being felt most strongly in southern England. Average prices were 1% lower in London and down 0.3% in the South East, while growth remained stronger in the North West, where prices increased 3.1%, and Northern Ireland, where they rose 5.4%.

Zoopla expects annual house price growth to slow towards 1% by the end of the year.