Lloyds house price index: south falls, North West and North East grow

UK house prices fell 0.6% in October, according to the Lloyds house price index (HPI, a monthly measure of average property values). Mortgage Solutions reported the figures on 6 November 2026. Prices were down 1.2% year-on-year, the largest annual fall since October 2023. But the national figure hides a clear split: London and the south of England fell, while the North West, North East, Northern Ireland and Scotland still grew.

What did the Lloyds index show for October?

The average UK property price stood at £296,285 in October (Mortgage Solutions). What Mortgage reports the September average as £298,167, so the typical home lost £1,882 in a month. October's 0.6% drop followed a 0.1% fall in September, according to the same Mortgage Solutions report.

The monthly fall was the steepest since Lloyds recorded a 1.6% drop in August 2023, according to the Guardian on 6 November 2026. Analysts had expected a small monthly rise of 0.1%, the Guardian and PropertyWire both report. The annual fall of 1.2% was the largest since October 2023, a point Mortgage Solutions, What Mortgage and PropertyWire all make.

The outlets do not agree on how long the run of monthly falls has lasted. Mortgage Solutions describes October as a second consecutive monthly fall, while the Guardian and PropertyWire call it the fourth. I could not read the Lloyds release itself, so I would treat the length of the streak as unconfirmed.

Where are house prices still rising?

Northern Ireland recorded the strongest annual growth in the UK at 4.4%, taking the average price to £228,708 (Mortgage Solutions). That marks a slowdown from 6.9% the previous month. Scotland rose 2.8% over the year to £222,667, and annual growth in Wales edged up to 1.6%, reaching £233,116.

In England, only three regions recorded annual growth, Mortgage Solutions reports. The North West led at 2.2%, taking its average to £249,916. The North East rose 2% to £184,318, and the West Midlands managed a more modest 0.3% to £261,656.

The underlying picture is worth reading alongside price levels. Every region still growing year-on-year has an average price below the UK figure of £296,285, on these figures. If you are weighing up these regions, our deal sourcing software can help you look past the regional average to the postcodes behind it.

Where are house prices falling fastest?

Greater London recorded the greatest annual decline, down 3.1% year-on-year to £524,892 (Mortgage Solutions). The South East and South West both fell 2.4%, to £379,258 and £298,057 respectively. The gap between the London average and the North East average is £340,574, on the same figures.

Jonathan Hopper, CEO of Garrington Property Finders, said: "Southern England is in sharp correction territory now." (Mortgage Solutions) He said prices there are sliding so fast "that they’ve dragged the national average into the red too". He added that the latest Lloyds data "can’t be dismissed as a blip".

Borrowing costs are part of the backdrop. The Bank of England raised the base rate (its main interest rate) from 3.75% to 4% the day before the index came out, according to Moneyfacts. Moneyfacts says average two- and five-year fixed mortgage rates had reached 5.97% and 6.00% respectively by the beginning of November.

Andrew Asaam, mortgages director at Lloyds, said: "Housing demand is currently being tested by a challenging economic backdrop." He pointed to "renewed inflationary pressures, driven in part by the conflict in the Middle East" (What Mortgage). Tanya Elmaz, director of sales at Together, said the figures highlighted the "distinct lack of momentum" in the market. "High mortgage rates are beginning to bite," she said (Mortgage Solutions).

What could the regional split mean for where you buy?

None of this is a buy signal on its own. A regional average blends very different streets, property types and price bands. But the direction of travel now differs by region, and that may shape where you focus your search. Our property investment strategies hub covers strategy comparisons and portfolio diversification if you are considering new areas.

Andrew Montlake, CEO at London-based Coreco, told the Newspage agency that a quieter market "can create more room to negotiate" (What Mortgage). But he said "the real issue remains the cost of borrowing rather than whether a property is 1% cheaper than it was last year". Our negotiation and finance hub covers offers and lender conversations in more depth.

In the regions still growing, the cost of borrowing applies just the same. With average two- and five-year fixes at 5.97% and 6.00% (Moneyfacts), you may wish to test any purchase at today's rates before relying on growth. Our free stress test calculator shows how a rental property's numbers hold up under a lender's stressed rate.

Asaam said conditions "are likely to remain subdued in the near term, but we don’t expect this to lead to a sustained period of falling house prices" (What Mortgage). He linked that view to wages "continuing to rise faster than property prices". He also said "house prices have changed relatively little over the past couple of years, as the market has gradually adjusted to higher interest rates" (Moneyfacts).

Key takeaways

• UK house prices fell 0.6% in October and 1.2% year-on-year to an average of £296,285, according to Lloyds' house price index as reported by Mortgage Solutions.

• The 1.2% annual fall was the largest since October 2023, and the monthly fall was the steepest since a 1.6% drop in August 2023 (the Guardian).

• Greater London fell 3.1% year-on-year to £524,892, with the South East and South West both down 2.4%.

• Northern Ireland led annual growth at 4.4% and Scotland rose 2.8%, while in England the North West rose 2.2% and the North East 2%.

• Moneyfacts puts average two- and five-year fixed rates at 5.97% and 6.00% at the beginning of November, so you may wish to test any purchase at current rates.