House price growth slowed in May even before the traditional summer lull, Land Registry data shows.

The latest Land Registry House Price Index shows average property values rose by 0.3% in May, down from 0.5% in April.

Annual price growth slowed to 2.7% in May, down from 3.9% a month before but this could be skewed by the aftermath of last year’s Stamp Duty rush.

This put the average price of a house in Britain at £270,080.

On a regional basis, average house prices rose in England by 2.3% annually, by 4.2% in Wales and 4.4% in Scotland.

Northern Ireland remains the fastest growing housing market, with prices up 7.4% annually in the first quarter of 2026.

Of the English regions, annual house price inflation was highest in the North East, where prices increased by 5.9% in the 12 months to May 2026.

London was the English region with the lowest annual inflation, with prices down by 3.7% annually.

Richard Donnell, Executive Director of Research at Zoopla, says: “Political change, the World Cup, a scorching summer and elevated mortgage rates have hit housing market activity this summer.

“Zoopla’s very latest data shows 20% fewer buyer enquiries than a year ago and 7% fewer sales agreed. This comes as annual house price growth in the ONS index has already slowed to 2.7% in the 12 months to May.

“We expect activity to pick up in the autumn as the outlook becomes clearer.”

Nathan Emerson, Chief Executive of Propertymark, says: “The figures are positive for sellers and show that the housing market remains resilient despite domestic and international pressures. However, affordability concerns continue to challenge many buyers, particularly first-time buyers.

“Following the inflation data, attention will now turn to the Bank of England’s base rate decision later this month, while Ofgem’s next energy price cap announcement, due in August, will also be closely watched.

“In addition, with Andy Burnham now Prime Minister, and a level of uncertainty surrounding the UK Government’s housing policy continuing, this could weigh on consumer confidence over the coming months as well.”

Jason Tebb, President of OnTheMarket, says: “Increased stock, more choice and continued squeezed affordability are likely to keep prices in check for the foreseeable future, which is good news for first-time buyers in particular.

“Our own Property Sentiment Index shows that the gap between buyer and seller expectations is narrowing, with properties increasingly priced appropriately from the outset. This should help transactions progress more quickly and smoothly, which will help the overall functioning of the housing market. We have also found that greater certainty around renters’ rights is giving tenants more confidence that their next move is achievable.”

Nick Leeming, Chairman of national estate agency Jackson-Stops, says: “The latest figures suggest the housing market has maintained positive price growth through the spring, supported by steady underlying demand. The market is becoming increasingly balanced, with buyers exercising greater choice and sellers recognising the importance of realistic pricing.

“Across the country, we continue to see strong demand for well-presented homes that are priced in line with local market conditions. At the same time, increased levels of available stock are creating a more competitive environment, meaning ambitious pricing strategies are less likely to succeed than they were in more supply-constrained markets.

“Transactions are being driven by value and quality rather than urgency.

“Looking ahead, market activity will increasingly depend on economic stability and policy certainty. As the Government develops its housing agenda, the industry will be looking for measures that support housing delivery, improve affordability and mobility, and give both buyers and sellers the confidence to plan for the longer term. While the market remains resilient, sustained growth will depend on creating the right conditions for activity across all parts of the housing market.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “It’s clearly too early to say whether the change in prime minister is likely to have a significant impact on housing market sentiment. One reason for uncertainty has been replaced by another. However, prospects for growth have definitely improved and need to.

“These most comprehensive of all the housing market reports, which cover purchases dependent on mortgages as well as the 40% of cash-only transactions, but are dated, show how national and international political as well as economic factors have been weighing on decision-making. Buyer bargaining power was strong before but fewer and slower transactions has seen it strengthen further.

“Looking forward, the encouraging inflation figures will help to revive confidence but we don’t expect major improvements in activity on the ground until the end of the summer holiday period at least.”