...UK house prices grew by a modest 2% over the year to June 2026 according to the Office for National Statistics, with more recent data points (Nationwide, Lloyds indexes) suggesting growth is reducing further. Significant regional differences are emerging between London and the North of the UK. House prices across the North have grown by about 5.45% on average, but London has experienced a decline of 2.5% over the same 12-month period. In addition, London house prices have fallen in three of the past four years, highlighting the increasingly negative trend in the capital. Several factors explain this divergence. Chief among these is prevailing mortgage rates: at the end of August 2026 the average two-year fixed rate was 4.9% compared to 2.2% for the same product in March 2022. This has increased financing costs and created affordability challenges for potential London buyers, directly affecting demand in the region, which has the highest average price in the UK. Attractive rental yields...
