Average UK house prices increased by 2% to £272,000 in the 12 months to June 2026, down from 3% in May and the second consecutive month the annual rate slowed, according to the Office for National Statistics (ONS).

The annual rate slowed for a second consecutive month as price growth in early summer was weaker than a year earlier, when prices rebounded following the April 2025 stamp duty land tax (SDLT) changes, the ONS said.

Prices rose by 1.8% in England to £293,000, 1.8% in Wales to £213,000 and 2.3% in Scotland to £195,000. Northern Ireland recorded much stronger annual growth of 9.2% in the second quarter, taking average prices to £202,000.

The North West recorded the strongest house price growth among English regions at 4.7%, while London remained the weakest-performing market, with prices falling 2.5% over the year.

Average UK prices increased by just 0.1% between May and June, compared with a 1% rise during the same period last year.

Chris Storey, chief commercial officer at Atom bank, commented: "Today’s ONS figures paint a picture of a cautious housing market, with annual house price growth continuing to slow.

"Would-be buyers have seen the impact of global events on mortgage rates, and their own monthly outgoings, and so have been more wary about pursuing transactions. It seems clear that activity is being driven by only the most motivated parties."

Average UK private rents, meanwhile, increased by 3.7% to £1,393 a month in the 12 months to July, up from 3.3% in June and marking the highest annual inflation rate since December 2025. Rents rose by 3.8% in England to £1,451, 4.5% in Wales to £843 and 1.7% in Scotland to £1,016, while Northern Ireland recorded a 2.3% increase to £875. In England, rental inflation was highest in the North East at 6.3% and lowest in the South East at 2.9%.

Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank, said: "Competition for good-quality rental property remains intense, which helps explain why rents continue to rise. Strong tenant demand does not automatically make every acquisition a good investment, and professional landlords are increasingly discerning about where they put their capital."

Upton added: "That shift towards more considered, professional investment is positive, but it cannot make up for a shortage of rental homes. Unless we address supply as well as standards, renters will continue to compete for too few homes and affordability will remain under pressure."

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