UK Property Market Pulse – August 2026
Monthly UK property market data covering July 2026 figures. The BoE delivered a second rate cut to 4.00%, annual house price growth hit 4% and mortgage approvals surged past 71,000.
Headline
The Bank of England cut the base rate by a further 25 basis points to 4.00% in August, the second cut of 2026. Halifax reported the average house price at £304,800, up 4.0% year-on-year - the strongest annual growth reading since early 2023. Nationwide recorded £277,100, up 3.6% annually. Mortgage approvals surged to 71,300, the highest since late 2021.
Data Table
| Metric | July 2026 | MoM | YoY | Source |
|---|---|---|---|---|
| UK average house price (Halifax) | £304,800 | +0.5% | +4.0% | Halifax |
| UK average house price (Nationwide) | £277,100 | +0.4% | +3.6% | Nationwide |
| BoE base rate | 4.00% | -0.25pp | -0.75pp | Bank of England |
| Average 2-year fixed mortgage rate | 4.55% | -0.10pp | -0.97pp | Moneyfacts |
| Average 5-year fixed mortgage rate | 4.35% | -0.07pp | -0.77pp | Moneyfacts |
| Monthly mortgage approvals | 71,300 | +3.2% | +13.1% | Bank of England |
3 Key Market Signals
1) Second rate cut accelerates the recovery
The base rate at 4.00% is now 75 basis points below its peak. The cumulative effect of two cuts in 2026 has meaningfully improved affordability. A buyer borrowing £250,000 on a 25-year repayment mortgage saves approximately £45 per month compared to the 4.50% rate environment at the start of the year.
2) Annual growth hits 4% - first time since 2023
Halifax's 4.0% annual growth is the strongest reading since March 2023 and takes the average UK house price above £300,000 for the first time on a sustained basis. Nationwide's measure at 3.6% confirms the trend. Price growth is now comfortably above CPI inflation, delivering real-terms gains for homeowners.
3) First-time buyers returning in force
Mortgage approvals at 71,300 represent a 13.1% year-on-year increase. UK Finance data shows first-time buyer completions up 15% year-on-year, driven by improved mortgage affordability and continued availability of 95% LTV products. The Help to Buy equity loan has been replaced by growing lender competition in the high-LTV space.
Regional Breakdown
| Region | Average Price | YoY Change |
|---|---|---|
| London | £548,000 | +2.4% |
| South East | £395,000 | +2.8% |
| South West | £330,000 | +3.2% |
| East of England | £360,000 | +3.0% |
| West Midlands | £265,000 | +4.3% |
| East Midlands | £250,000 | +4.5% |
| North West | £235,000 | +5.0% |
| Yorkshire & Humber | £220,000 | +4.8% |
| North East | £205,000 | +5.5% |
| Scotland | £215,000 | +4.4% |
| Wales | £225,000 | +3.8% |
| Northern Ireland | £195,000 | +6.0% |
Outlook
With the base rate at 4.00%, the market enters the autumn in its strongest position since 2022. The BoE is expected to hold at its September meeting, with any further cuts dependent on inflation data. Mortgage rates on standard products are approaching the mid-4% range and best-buy deals are below 3.70% on 5-year fixes. The consensus full-year forecast has been revised upward to 3.5–5% annual house price growth.
Published: 3 August 2026 | By PropertyWiki Team
PropertyWiki publishes monthly UK property market data using Halifax, Nationwide, BoE and Moneyfacts data. This bulletin is for informational purposes only and does not constitute investment advice.