ONS data points to a market losing pace, with London recording its 10th consecutive annual fall
Average UK house prices stood at £272,000 in June, with annual growth of 2% on a provisional basis, according to the latest figures from the Office for National Statistics.
The rate slowed from a revised 3% in the 12 months to May 2026, marking the second consecutive month of deceleration.
The ONS attributed the slowdown to weaker price growth in early summer 2026 compared with the same period last year. Between May and June, average prices rose by just 0.1%, against a 1% rise in the equivalent month a year earlier. The figures are consistent with private sector indices from Rightmove and Zoopla, both of which have flagged subdued price growth over the period.
The comparatively strong figures recorded in May and June 2025 reflected a rebound following a sharp price fall in April 2025, which coincided with Stamp Duty Land Tax (SDLT) changes in England and Northern Ireland that took effect on 1 April 2025.
Average UK house prices up by 2.0%, to £272,000, in the 12 months to June 2026, down from 3.0% in the 12 months to May 2026.
— Office for National Statistics (ONS) (@ONS) August 19, 2026
Average UK private rents up by 3.7%, to £1,393, in the 12 months to July 2026, up from 3.3% in the 12 months to June 2026.
➡️ https://t.co/OF5UcWzsym pic.twitter.com/H3rGtzmCZm
"It is particularly interesting to note price growth is holding up better than we’d dared hope," said Jeremy Leaf (pictured right), north London estate agent and a former RICS residential chairman.
"On the other hand, the figures reflect activity mainly from several months ago and not the period since the change in prime minister, though worries about mortgage rate and inflation persist.
"In our offices, we are still awaiting evidence of a Burnham Bounce but in the meantime our sellers are dividing between those who recognise the importance of realistic pricing in order to attract the dwindling number of committed buyers and those that don’t."
Northern Ireland leads with 9.2% growth; London remains weak
England's average house price reached £293,000 in June 2026, up 1.8% — or approximately £5,000 — year-on-year. That rate compares with 2.5% in the 12 months to May 2026, with the slowdown attributed to the same base effects from the post-SDLT rebound in summer 2025.
In Wales, the average price was £213,000, up 1.8% (£4,000) annually, easing from 4.1% in the 12 months to May. Scotland recorded an average of £195,000, up 2.3% (£4,000), down from 4.9% the previous month.
Northern Ireland was the notable outlier. Average prices in the second quarter of 2026 (April to June) reached £202,000, a 9.2% annual rise of approximately £17,000 compared with the same quarter in 2025. That is the highest annual inflation rate for Northern Ireland since the fourth quarter of 2022, when it reached 10.1%. The ONS noted that muted price growth in the second quarter of 2025 — attributed to the stamp duty changes — created a low base that amplified the latest annual comparison.
Within England, the North West recorded the highest annual house price inflation at 4.7% in the 12 months to June 2026, down from 5.6% in the previous month.
London remained the weakest region. Average prices fell 2.5% annually in June 2026, though that was a slight improvement on the 3.1% fall recorded in May. It was the tenth consecutive month of annual price declines in the capital, driven primarily by falls in Inner London.
Rental market picks up pace
The latest ONS data release also showed that average monthly private rents across the UK rose 3.7% in the year to July 2026, reaching £1,393 on a provisional basis — up from 3.3% annual growth in the 12 months to June 2026.
By nation, average rents in England reached £1,451 (up 3.8%), Wales £843 (up 4.5%), and Scotland £1,016 (up 1.7%), all in the 12 months to July 2026. In Northern Ireland, the most recent data — for the 12 months to May 2026 — showed average rents at £875, a rise of 2.3%.
Within England, the North East saw the steepest rental inflation at 6.3%, while the South East recorded the softest growth at 2.9%, both in the 12 months to July 2026.
"The rental data confirms what we have seen on the ground - that demand remains strong, particularly for higher-end houses among those returning from holiday seeking accommodation before the new school term," Leaf said.
“Rents have held firm invariably supported by a shortage of supply. Some landlords are still selling due to Renters’ Rights Act and tax concerns and those staying are insisting on better quality references, just in case possession is required. We have also noticed more activity prompted by some tenants taking advantage of new rules rather than remaining in a fixed-term arrangement.".
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