UK house price growth slowed for the third consecutive month in July, with average prices increasing by 1.4% in the year to July, according to provisional figures from the Office for National Statistics (ONS). This is a decrease from the 1.5% annual growth recorded in June.
The average UK property was valued at £273,000 in July. Regionally, England saw average prices rise by 1.1% to £293,000, while Wales experienced stronger annual growth of 2.6%, bringing its average to £215,000. Scotland's prices increased by 2.3% to an average of £196,000.
London remained the weakest-performing English region, with average prices falling 3.3% over the year to July, following a 3.1% annual decline in June. This marks the eleventh consecutive month of annual house price falls in the capital, where the average property was valued at £569,000, £19,000 below its July 2025 peak.
In contrast, the North East recorded England's strongest annual growth, with average prices increasing by 4.9% in the 12 months to July, up from 4% in June. Northern Ireland saw the strongest growth across the UK, with average prices reaching £202,000 in the second quarter of 2026, a 9.2% year-on-year increase.
Nick Leeming, chairman of Jackson-Stops, noted that realistic pricing is increasingly crucial for homes to sell. He stated that buyers are informed and selective, meaning sellers cannot rely on ambitious pricing. Nathan Emerson, CEO at Propertymark, highlighted that attention will now turn to the Bank of England's base rate decision and the forthcoming Budget for their potential impact on market confidence.