The typical British home increased in value by £5,000 over the year to June, according to the latest figures from HM Land Registry. This represents a 2% year-on-year rise, a slowdown from the 4% and 3% growth recorded in April and May, respectively.
House price growth has been less robust in early summer 2026 compared to the same period last year. Between May and June this year, average prices saw a modest 0.1% increase, contrasting with a 1% rise in the equivalent period in 2025. Despite this, the property industry is anticipating a market rebound in the autumn.
Richard Donnell, executive director of research at Zoopla, attributed the slower market activity to higher mortgage rates impacting buying power and moderating price inflation. However, he expressed optimism for a recovery in activity in September and October, noting early indications of returning buyers.
Regional Variations Emerge
Significant regional differences are apparent in the housing market. The North West and North East of England have experienced price increases of 4.7% and 4.3% respectively over the past year. In Westmorland and Furness, a local authority in the North West, prices have surged by 11.1% in the year leading up to June.
In contrast, London has seen a 2.5% average decrease in property values over the last year. The City of Westminster in central London experienced a particularly sharp decline, with prices dropping 25.4% to £854,000 from £1.145 million, a £291,000 reduction in 12 months.
However, there are emerging signs that the capital's property market may be stabilizing. The average home value in London rose by £9,000 in the past month. Jonathan Hopper, chief executive of Garrington Property Finders, suggested that property values in the capital have been falling annually for ten consecutive months, but indications are that prices may have reached their lowest point.
Hopper remains cautiously optimistic about markets in the South West and East of England, where prices are still below their four-year-ago levels. He noted that buyers in the South currently have ample choice and negotiating power due to a surplus of supply. However, as the balance between demand and supply shifts, buyers in these regions may soon face increased competition.
The current economic climate, including increased mortgage rates attributed to inflation linked to global conflicts, has reversed earlier hopes of interest rate cuts by the Bank of England. This situation leads to higher costs for those remortgaging or purchasing new homes.