House price growth slowed in June, reveals Land Registry

House price growth slowed again in June, Land Registry data shows.

The latest Land Registry House Price Index shows average house price annual inflation in Britain was 2% in the 12 months to June 2026.

This was down from the revised estimate of 3% annually for May 2026.

Monthly growth also slowed from 1% in May to just 0.1% in June 2026, according to the figures.

It puts the average British house price at £272,188.

Regional differences

There are of course regional differences. Average house prices in the 12 months to June 2026 increased by 1.8% in both England and Wales and by 2.3% in Scotland.

The average house price increased annually in the second quarter by 9.2% in Northern Ireland.

Of the English regions, annual house price growth was highest in the North West, where prices increased by 4.7%.

London was the English region with the lowest annual inflation, where prices decreased by 2.5% This was the tenth consecutive month of annual price falls in London, driven by annual falls in Inner London.

Richard Donnell, Executive Director of Research at Zoopla, says: “Housing sales market activity has been hit hard over the summer by higher mortgage rates which have hit buying power and slowed price inflation.

“Movers have taken stock of the political and economic backdrop. However people can’t put decisions on hold indefinitely and we expect a rebound in activity in September and October with some early signs of a return of buyers.

“Buyers have a huge choice of homes for sale and aren’t in a rush so sellers who really want to move need to price realistically to attract buyers and secure a sale.

“Higher borrowing costs have hit first time buyers harder than homeowners and this means people are renting for longer which will support demand for rented homes and steady growth in rents, particularly as we come into the busy time of year for the rental market as students and those starting new jobs compete for a still scarce supply of rented homes.

“Rents are rising slowly in many big university cities but growth is faster in affordable towns adjacent to big cities.”

Jason Tebb, President of OnTheMarket, says: “Although a little dated, Land Registry figures show property values continued to rise on an annual basis in June, with the average property price £5,000 higher than a year ago. Increased stock, more choice and squeezed affordability are likely to keep prices in check for the foreseeable future, which is encouraging for first-time buyers in particular.

“However, the national average conceals significant regional differences depending on where you are in the country,.

“While lenders have been easing mortgage rates in recent days, inflation rising to 2.9% in the year to July – while unexpected given the rise in energy prices – is concerning for borrowers. The Bank of England’s decision to hold base rate for five consecutive meetings has provided some welcome stability, enabling buyers and sellers to plan ahead with more confidence, and hopefully this steady approach will continue for a while at least.”

Nick Leeming, Chairman of national estate agency Jackson-Stops, says: “Buyers are still moving, but tighter affordability means price, quality and value are determining which homes secure attention. This is a market that is increasingly price-sensitive.

“June brought the start of a political transition, with Andy Burnham emerging as the likely next Prime Minister and prompting renewed debate about the incoming Government’s approach to property taxation. While Burnham has since ruled out changes to Stamp Duty at the next Budget, the tax remains a significant barrier to movement.

“Our own research found that removing these costs could bring more than 300,000 owner-occupied homes onto the market across England within less than a year. June also offered buyers only a brief period of greater mortgage-rate stability, but borrowing costs still remained materially higher than at the beginning of the year.

“Buyers now have more choice, more time and greater negotiating power. Sellers can still attract committed purchasers, but they must engage with the market as it is, not as they might wish it to be. That means listening to good advice from local agents and pricing with confidence and realism from day one. Realistic pricing is not about leaving value on the table; it is how sellers create competition for it.”

Nicky Stevenson, Managing Director of Fine & Country, says: “Annual house price growth slowing may grab the headlines, but this does not point to a market in retreat. Instead, it reflects the growing influence of buyer affordability, increased choice and a more cautious economic backdrop.

“For buyers, stock levels are close to a 12-year high for this point in the year, giving them more choice and greater room to negotiate. At the same time, recent reductions in mortgage rates from a few major lenders should provide a welcome boost to buying power.

“For sellers, the message is slightly different. The days of simply putting a property on the market and expecting strong competition are behind us, at least for now. With homes taking longer to sell and more properties competing for buyers’ attention, realistic pricing is becoming increasingly important.

“What is encouraging, however, is that transactions have stabilised and mortgage approvals have improved, suggesting that there remains a solid underlying appetite to move. Buyers have not disappeared, they are simply more selective.

“As we move towards the autumn market, we expect activity to strengthen, but price growth is likely to remain modest. In many ways, that could be healthy for the market: a period of greater stability, where buyers have choice, sellers have realistic expectations, and transactions can continue without prices racing ahead of household finances.”