The UK's house price growth has reached a six-year low of 2.7%, with the average property valued at £271,000 as of May 2026, according to new data from the Office for National Statistics (ONS). This marks a significant slowdown from the 3.9% annual growth recorded just last month.
The ONS has attributed this decline largely to the base effect caused by changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland in April 2025, which have skewed comparisons between years.
A breakdown of regional performances reveals mixed results. In England, prices increased by an average of £6,000 (£292,000) year-on-year, down from 4% annual growth in April. Wales and Scotland recorded stronger annual growth, with prices rising 4.2% to £215,000 and 4.4% to £196,000 respectively.
Notably, Northern Ireland continued to lead the UK in terms of growth, with average prices hitting £198,000 in the first quarter of 2026, a 7.4% increase from a year earlier. Regionally within England, the North East maintained its position as the fastest-growing area, although annual price inflation slowed from 9.7% in April to 5.9% in May.
London emerged as the weakest-performing region, experiencing a 3.7% fall in average house prices over the year to May – the ninth consecutive month of annual declines for the capital. This is driven by significant reductions in areas such as Westminster and Tower Hamlets, where inner London prices dropped 5.9%.
The moderation in house price growth comes at a critical time for policymakers, who are closely monitoring economic indicators to balance inflation targets with growth considerations. While this slowdown might offer some respite to first-time buyers, it signals a cooling in what has been a robust market for several years.