Average UK house price falls annually for first time since 2023 – Lloyds

With the average UK house price falling in August by 0.4 per cent, Charlotte Harrison, chief executive officer of home financing at Skipton Building Society, believes that while affordability is improving slightly, high prices mean that first-time buyers are under pressure.

She said: “The resilience we’re seeing in the housing market is encouraging, particularly given ongoing economic uncertainty. While average UK house prices have fallen annually for the first time since 2023, this masks very different realities depending on where people live and their stage of life.

“While there are signs that affordability is improving slightly, the latest Skipton Group Home Affordability Index shows that many first‑time buyers remain under significant pressure. Housing costs continue to account for more than 45 per cent of household income for many, leaving little capacity to save for a deposit. Rising rental costs are compounding this challenge, making it harder for would‑be buyers to get ahead. Regional differences are also increasingly stark, with average first‑time buyer deposits equivalent to 140 per cent of household income in London, double the level seen in the North.

“This is where lenders and the wider industry have an important role to play. Continued innovation, improved flexibility and practical support will be key to helping people navigate affordability pressures and keep homeownership within reach at different life stages.”