Buyer activity is beginning to recover after a slower summer, with searches for homes now 7% higher than a year ago. However, higher mortgage rates have reduced buying power, causing sales and house price growth to slow.
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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.
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.
The average UK house price is £271,900 in June 2026, up 1.5% year-on-year. This guide covers UK house prices by property type, region and city, updated monthly with official sales data. We reveal the 20 most expensive cities, 20 cheapest cities, fastest-growing markets and where prices are falling.
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.
There are fewer buyers in the market than a year ago, but those who remain are still getting deals done. Higher mortgage rates are adding caution, which means pricing to sell is more important than ever.
The year has begun with renewed momentum in the housing market, supported by improving mortgage market conditions.
The 2026 market has hit the ground running with a rebound in demand levels, following a quiet end to 2025. With mortgage rates stabilising at the lowest level in 3 years, buyers are back - but they have more choice than they’ve had in 8 years.
