The UK's house price growth has slowed to a 2.7% annual rate in May 2026, with the average property value standing at £271,000, according to the latest figures from the Office for National Statistics (ONS). This marks a notable slowdown compared to previous periods, with even the same month last year seeing a more modest 0.3% increase.
The ONS attributes this slowdown partly to a 'base effect', following adjustments to Stamp Duty Land Tax (SDLT) in England and Northern Ireland in April 2025. This means that the comparison is being made against a period of unusually high activity, making current growth appear less robust.
Industry experts acknowledge the continued positive growth but warn that affordability concerns persist. Nathan Emerson, CEO of Propertymark, noted that while the figures are positive for sellers, first-time buyers continue to struggle with affordability. He pointed out that attention will now turn to the Bank of England's base rate decision later this month and Ofgem's energy price cap announcement in August, both of which could influence consumer confidence.
Nick Leeming, chairman of Jackson-Stops, echoed these sentiments, saying steady underlying demand has supported positive price growth through the spring. However, he stressed that increased stock levels are creating a more competitive environment, requiring sellers to adopt realistic pricing strategies. Leeming also highlighted research showing that economic uncertainty has delayed moving plans for 42% of respondents, underscoring the need for greater stability and policy certainty.
Iain McKenzie, CEO of the Guild of Property Professionals, further elaborated on the shift, stating that buyers are now taking longer to make decisions, negotiating harder, and are more sensitive to price. With more homes available, purchasers have greater choice, putting pressure on sellers to price competitively based on evidence and local market conditions.
The property industry is now looking to the new government for clarity on housing policy, with an expectation that measures supporting housing delivery, improving affordability and mobility, and providing long-term confidence for both buyers and sellers will be crucial for sustaining market activity and growth.