The latest official house price data show a steadying market, where high mortgage rates and the summer lull have slowed annual growth, alongside a distinct North-South performance gap.
Figures from HM Land Registry confirm that house prices were higher than a year earlier. UK annual house price inflation slowed from 3.9% in April 2026 to 2.7% in May 2026, following stamp duty changes, higher interest rates, and softer consumer demand.
The average house price in England in May 2026 was £292,000, with annual growth slowing to 2.3%.
In Wales, the average price was £215,000, up 4.2% year-on-year.
House prices by region
The market continues to display a strong division: northern regions are delivering solid price growth, while London and parts of the South are seeing price reductions.
Strongest annual growth: the North East led England with an annual rise of 5.9%, but had the lowest average price at £164,000.
Strongest monthly growth: prices in the North West grew by 1.4% month-on-month, an annual change of 5.8%, taking the average house price to £220,000.
Weakest region: London house prices continued their poor performance over recent months, dropping 1.2% from April and 3.7% year-on-year. The capital still had the highest average house price at £545,000. The decline was driven heavily by values falling most in Inner London, down 5.9% over the year.
Demand remains slanted towards houses rather than flats, as buyers prioritise space and gardens:
Semi-detached: £291,000 in England (4.1% annually) | £215,000 in Wales (4.7% annually)
Terraced: £244,000 in England (3.2% annually) | £173,000 in Wales (5.3% annually)
Detached: £474,000 in England (2.5% annually) | £336,000 in Wales (3.1% annually)
Flats and maisonettes: £217,000 in England (-2.2% annual drop) | £129,000 in Wales (1.0% annually)
Buyer activity and funding in England
First-time buyers: an average purchase price of £244,000 (+2.3% annual growth), indicating sustained underlying demand despite affordability hurdles.
Former owner-occupiers: an average purchase price of £356,000 (+2.3% annual growth).
Mortgage versus cash purchases: mortgaged properties averaged £298,000 (+2.4% annually), while cash purchases averaged £278,000 (+2.1% annually).
Lender data: June 2026 trends
Major mortgage lenders provide a snapshot of broader sentiment over the summer:
Lloyds House Price Index: average property prices were £299,330, with an annual growth rate of 0.6%. The index recorded a small rise in June of 0.2%, while overall activity remained cautious.
Nationwide House Price Index: annual house price growth was 2.2% in June 2026. Elevated borrowing costs continued to constrain market momentum.
