House price growth in the UK decelerated in May 2026, according to the latest Land Registry House Price Index, with monthly growth dropping to 0.3% from 0.5% in April.
Annual price growth slowed to 2.7% in May, down from 3.9% the previous month, though this figure may be affected by comparisons with last year’s stamp duty deadline. The average property price in Britain now stands at £270,080.
Regional variations
Regional performance showed significant variation across the UK. Average house prices in England rose 2.3% annually, while Wales recorded 4.2% growth and Scotland 4.4%. Northern Ireland remained the fastest growing market, with prices up 7.4% annually in the first quarter of 2026.
Within England, the North East showed the strongest annual growth at 5.9% in the 12 months to May 2026. London recorded the weakest performance, with prices down 3.7% annually.
Market activity declining
Richard Donnell, Executive Director of Research at Zoopla, noted that political change, the World Cup, summer weather and elevated mortgage rates have impacted housing market activity. Zoopla’s data shows buyer enquiries down 20% year-on-year and sales agreed down 7%.
Nathan Emerson, Chief Executive of Propertymark, highlighted ongoing affordability concerns, particularly for first-time buyers. He noted that attention will focus on the Bank of England’s base rate decision later this month and Ofgem’s energy price cap announcement in August. Political uncertainty under Prime Minister Andy Burnham could also affect consumer confidence in coming months.
Balanced market conditions
Jason Tebb, President of OnTheMarket, said increased stock and continued affordability pressures are likely to keep prices in check, which could benefit first-time buyers. The company’s Property Sentiment Index shows the gap between buyer and seller expectations is narrowing, with properties increasingly priced appropriately from the outset.
Nick Leeming, Chairman of Jackson-Stops, said the market is becoming increasingly balanced, with buyers exercising greater choice and sellers recognising the importance of realistic pricing. He noted that transactions are being driven by value and quality rather than urgency, and that ambitious pricing strategies are less likely to succeed in the current environment.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, said it is too early to assess whether the change in prime minister will significantly impact housing market sentiment. He noted that buyer bargaining power has strengthened further due to fewer and slower transactions, though encouraging inflation figures should help revive confidence.
Industry observers do not expect major improvements in activity until after the summer holiday period. The Land Registry data covers both mortgage-dependent purchases and the approximately 40% of transactions completed with cash.
