Zoopla's September 2026 data shows UK mortgage rates at a three-year high, with sales volumes and price growth under pressure across the country
UK house prices are still rising, but only just. Annual price growth has slowed to 0.8%, the weakest reading in more than two years, as UK mortgage rates climb to levels not seen since 2023.
Average rates for a typical 75% loan-to-value (LTV), five-year fixed loan reached 5.2% at the end of September 2026. That is up from 4% at the start of the year, according to Zoopla’s UK House Price Index. For the average homebuyer, that translates to an additional £150 per month in repayment costs or £1,800 over a full year. The comparison is against a January 2026 mortgage.
Those numbers carry real weight for brokers. Clients who budgeted for a purchase twelve months ago may now be looking at a materially different affordability picture. The data also sheds light on which conversations matter most, and which markets still offer viable opportunities.
What the sales data tells brokers
The number of homes available for sale is running 5% above last year’s levels, widening choice at a time when fewer buyers are proceeding. Sales agreed in the four weeks to 20 September 2026 were 9% lower than the same period in 2025. This decline is consistent across every region and country of the UK.
Zoopla notes that demand remains present, but buyers are scrutinising properties more carefully before committing to a price.
For brokers advising clients on timing, the data does not support a straightforward “wait for rates to fall” message. Zoopla projects house prices to end 2026 roughly 0.5% higher, with annual sales expected to close at around 1.1 million.
Which regions still offer viable opportunities for mortgage clients?
Price growth is positive in the North and Midlands but broadly flat or negative across southern England. Belfast leads all cities tracked, with prices up 5.0% year-on-year to an average of £204,900.
Liverpool is next at 4.3% (£172,400), followed by Newcastle at 2.7% (£165,900). In the North West, the regional average increase reached 3.6%.
London prices have fallen 1.0% year-on-year to an average of £524,500. Cambridge is down 1.3% (£456,300) and Bournemouth has recorded the steepest city-level decline at -2.1% (£314,300). The East of England and South East are also in negative territory, at -0.3% and -0.7% respectively.
The West Midlands (-15%) and East of England (-14%) have seen the sharpest drops in sales agreed. Scotland remains comparatively resilient: sales are down just 1% and stock is up only 3%.
| City | Average price | % YoY Aug 2026 |
|---|---|---|
| UK | £273,000 | 0.8% |
| Belfast | £204,900 | +5.0% |
| Liverpool | £172,400 | +4.3% |
| Newcastle | £165,900 | +2.7% |
| Glasgow | £167,500 | +2.6% |
| Manchester | £240,200 | +2.2% |
| Sheffield | £179,600 | +1.7% |
| Edinburgh | £284,900 | +1.6% |
| Birmingham | £217,400 | +1.5% |
| Leeds | £217,000 | +1.2% |
| Cardiff | £261,200 | +0.8% |
| Nottingham | £205,700 | +0.7% |
| Southampton | £257,700 | +0.5% |
| Leicester | £229,100 | +0.2% |
| Bristol | £342,100 | -0.1% |
| Portsmouth | £275,600 | -0.3% |
| Aberdeen | £130,400 | -0.6% |
| Oxford | £448,600 | -0.8% |
| London | £524,500 | -1.0% |
| Cambridge | £456,300 | -1.3% |
| Bournemouth | £314,300 | -2.1% |
Source: Zoopla House Price Index, August 2026 (published September 2026)
Flats vs houses: a market within a market
Higher borrowing costs have not hit all property types equally. UK flat prices have been falling year-on-year since May 2025, while house prices continue to record modest growth in most regions. Flat prices are declining in almost every region, the notable exceptions being Scotland and the North East.
Brokers should take a tailored approach depending on who their client is and where they’re looking to buy. Clients looking at flats in southern England face a different risk profile from those considering terraced houses in the North West or Scotland.
What do rising UK mortgage rates mean for brokers heading into Q4?
Zoopla attributes some of the rate pressure to the Middle East conflict’s impact on energy prices, which has tempered the autumn activity rebound the industry had anticipated.
Brokers should watch remortgage pipelines carefully. Clients who fixed at lower rates in 2021 or 2022 are now coming off deals into a significantly higher rate environment. A closer look at how mortgage rates reversed course in July as swap rate volatility bit explains why rate forecasting this year has proven difficult.
UK mortgage rates are expected to remain elevated through year-end. Brokers who have prepared clients through early affordability conversations and regional market guidance are better positioned than those who waited.
