Average UK house price annual inflation provisionally estimated by HM Land Registry was 2.7% in the 12 months to May 2026, down from a revised estimate of 3.9% in the 12 months to April 2026. The average monthly increase is 0.3%.
The slowdown in the annual rate was driven by the aftermath of last year’s stamp duty changes, in line with effects seen in previous stamp duty relief.
The average UK house price was £271,000 in May 2026, £7,000 higher than a year previously. In England, average prices increased by 2.3% to £292,000, with Wales seeing an increase of 4.2% to £215,000 (4.2%) and Scotland prices rising by 4.4% to £196,000. In Northern Ireland, the average house price increased in the year to Q1 (Jan to Mar) 2026 to £198,000 (7.4%).
Of the English regions, annual house price inflation was highest in the North East, where prices increased by 5.9% in the 12 months to May 2026. London saw the lowest annual inflation, with a 3.7% decrease.
Commentary on the figures has been somewhat subdued. Jeremy Leaf said prospects for growth “have definitely improved”, but the north London estate agent and former RICS chairman doesn’t expect the market to pick up in the short-term.
“Looking forward, today’s encouraging inflation figures will help to revive confidence but we don’t expect major improvements in activity on the ground until the end of the summer holiday period at least”, he explained.
Zoopla’s executive director of research Richard Donnell agrees. He said: “Political change, the World Cup, a scorching summer and elevated mortgage rates have hit housing market activity this summer.
“Zoopla’s very latest data shows 20% fewer buyer enquiries than a year ago and 7% fewer sales agreed. This comes as annual house price growth in the ONS index has already slowed to 2.7% in the 12 months to May. We expect activity to pick up in the autumn as the outlook becomes clearer.”
Data from OnTheMarket shows a narrowing gap between buyer and seller expectations. “This should help transactions progress more quickly and smoothly, which will help the overall functioning of the housing market”, Jason Tebb, OnTheMarket president, said.
According to Nick Leeming, chairman of estate agency Jackson-Stops, the increasingly balanced market is a result of steady underlying demand and sensible pricing.
“Across the country, we continue to see strong demand for well-presented homes that are priced in line with local market conditions”, he explained.
“Looking ahead, market activity will increasingly depend on economic stability and policy certainty. As the government develops its housing agenda, the industry will be looking for measures that support housing delivery, improve affordability and mobility, and give both buyers and sellers the confidence to plan for the longer term.
“While the market remains resilient, sustained growth will depend on creating the right conditions for activity across all parts of the housing market.”
With inflation easing to 2.6% in the 12 months to June, down from 2.8% the previous month, the Bank of England’s upcoming decision on base rate could ease affordability concerns for buyers.
“While it’s encouraging to see inflation move closer to the Bank of England’s 2% target, household affordability remains under pressure”, Propertymark CEO Nathan Emerson said.
“Renewed international political tensions could still impact the wider economy, particularly over the summer months. Although today’s figures mark a third consecutive fall, many households will likely continue to approach their finances with caution as not to overstretch their levels of incomings vs outgoings on key household items moving forward.”
