London the only UK region to see house prices fall: House Buyer Bureau – Mortgage Strategy
London is now the only region of Britain where house prices continue to trend downwards, according to analysis by House Buyer Bureau.
The property firm said the average home in the capital is forecast to lose almost another £5,000 in value before the end of the year, should current market conditions persist.
House Buyer Bureau analysed the latest UK house price index data to calculate the average monthly rate of house price growth across Britain over the last 12 months.
The company also modelled London’s next six months using the previous 24 months of house price movements to forecast how values are likely to evolve through the remainder of 2026.
The analysis shows that house price growth has largely stagnated across Britain, but London is the only region to have recorded monthly house price falls over the last 12 months.
The North East has seen the strongest average monthly house price growth at 0.8%, followed by Yorkshire and the Humber and the North West (0.6%), with the West Midlands and East Midlands both recording 0.5%.
Across England as a whole, house prices have increased by an average of 0.3% per month, whilst the South East has remained flat at 0%.
London, however, has seen house prices decline by an average of -0.2% per month.
Based on the previous 24 months of house price movements, House Buyer Bureau forecasts that London’s average house price will fall from the current average of £552,655 to £547,889 by December 2026.
Should this forecast materialise, it would represent a further decline of -0.9%, or £4,766, by the end of the year.
It would also mean that the average London home has lost almost £21,000 since reaching its recent peak of £568,801 in July 2025.
House Buyer Bureau managing director Chris Hodgkinson said: “The property market has largely stagnated over the last 12 months as we’ve seen minimal levels of house price growth materialise across most areas of Britain. However, London is the clear exception, with the capital continuing to be the only region to have seen house prices trend downwards.
“Unlike previous years where a period of decline has been followed by an almost immediate return to growth, it seems as though the London market has run out of steam.”
