UK house price growth has slowed to 1.3% as higher mortgage rates and uncertainty weigh on market activity. While the average home has gained £3,400 in value this year, the picture varies significantly across the country, with some regions seeing strong growth while others face falling prices.
Our latest data highlights the impact of stamp duty on the Southern housing market. 51% of first-time buyers pay in the South East and nearly 8 in 10 in London, compared to fewer than 1 in 10 across Northern England.
UK house prices continue to show modest growth, up 1.4% year on year in June 2026, supported by easing mortgage rates and resilient demand in many regions. Market activity varies across the UK, with improving affordability helping to stabilise conditions.
Rental inflation at 2.1% understates what most renters moving home are experiencing. Three-quarters of rental areas are growing faster than the national average because 25% fewer homes to rent than pre-pandemic levels is keeping rent inflation positive.
Sales are holding up despite fewer buyers in the market but pricing correctly remains essential for sellers in 2026. The key finding this month is that first-time buyers are spending more and not compromising on what they want to buy.
Sellers are finding buyers as fast as last year and buyer demand has rebounded since Easter. The UK market is proving surprisingly resilient to global uncertainty but confidence varies across the country with higher mortgage rates felt more keenly in the South.
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