UK House Prices See Surprise 3.8% Annual Rise in April, North East Leads Growth

Official statistics reveal that the price of the typical home in Britain increased by 3.8% in the 12 months leading up to April 2026, reaching an average of £270,000. This marks a significant uptick from March, when the Office for National Statistics (ONS) reported no annual house price growth.

The surge in April's figures is partly attributed to a statistical anomaly. In April 2025, stamp duty changes led to a temporary dip in house prices as buyers rushed to complete purchases before a deadline. Following this, sales dropped, and prices fell by 2.9% in a single month. The current April 2026 data reflects this lower comparative base, though property experts view it as indicative of an improving market.

Nicky Stevenson, managing director at Fine & Country, commented that while the market is not experiencing rapid acceleration, it is demonstrating healthy and sustainable growth for both buyers and sellers. She noted a more modest 0.7% rise in average house prices between March and April 2026, suggesting a steady, rather than overheated, market.

Semi-detached and terraced houses saw the most substantial annual price increases, rising by 5.1% and 5.8% respectively. Detached homes increased by 3%, and flats by 0.3%. The North East region recorded the highest annual house price increase at 9.9%. Northern Ireland followed with a 7.4% rise, while the North West and Yorkshire and the Humber regions both saw a 7.2% increase.

London was the only region to experience a decline, with average prices falling by 2.1% in the year to April 2026. The South East saw minimal growth of 0.3%. On a monthly basis, house prices rose by 0.7% between March and April 2026, a reversal from the 0.4% fall observed between February and March.

Regarding the rental market, average monthly private rents increased by 3.3% in the 12 months to May 2026, a slight decrease from the 3.5% annual rise recorded up to April. The average rent for a private sector tenancy across Britain is now £1,383.

Experts suggest that the annual inflation rate holding steady at 2.8% in the year to May 2026 could benefit the housing market. This stability increases the likelihood of the Bank of England maintaining its interest rates at 3.75% at its upcoming meeting, potentially leading to further reductions in mortgage rates. Jason Tebb, president of OnTheMarket, indicated that lenders have been lowering mortgage rates, a trend expected to continue with stable inflation. He also anticipates a continued hold in the base rate, which should boost confidence among market participants.