“Across all nations, housing remains a key political focus, and there are significant challenges still to overcome.”
– Nathan Emerson – Propertymark
The Office for National Statistics (ONS) has revealed that average UK house prices rose by 2% to £272,000 in the year to June 2026, down from the annual growth rate of 3% in May.
Across the UK, average house prices increased by 1.8% to £293,000 in England, 1.8% to £213,000 in Wales, and 2.3% to £195,000 in Scotland.
House prices rose by just 0.1% month-on-month between May and June 2026, compared with a 1% increase in the same period last year. ONS reports that this is due to the fact that average price levels rebounded in May and June 2025 following a sharp decline in April of that year, which coincided with the Stamp Duty Land Tax changes in England and Northern Ireland.
“The UK’s housing market is central to the country’s economic engine, so any fall in house prices can naturally create a sense of nervousness among sellers, especially when looking at the figures year-on-year,” Nathan Emerson, CEO at Propertymark, said.
“While short-term fluctuations are a normal part of the property market, they can influence confidence and lead some homeowners to delay decisions until there is greater certainty about the direction of the market.
“It will, however, be a case of closely watching how matters progress over the coming months, as significant uncertainty remains, particularly when considering the wider global economy.
“Across all nations, housing remains a key political focus, and there are significant challenges still to overcome. We recently witnessed Andy Burnham enter Downing Street, specifically highlighting housing as an issue that must remain at the heart of the UK government’s attention moving forward.”
Chris Storey, chief commercial officer, Atom Bank, added: “Today’s ONS figures paint a picture of a cautious housing market, with annual house price growth continuing to slow.
“Would-be buyers have seen the impact of global events on mortgage rates, and their own monthly outgoings, and so have been more wary about pursuing transactions. Rightmove has just reported the biggest drop in August asking prices since 2018, while the number of homes available has hit a 12-year high.
“Combined with research from Propertymark noting that homes are taking longer to sell, it seems clear that activity is being driven by only the most motivated parties.
“The path ahead remains uncertain, with news today of inflation accelerating sharply in July. The Bank of England held base rate but has said it is ready to raise interest rates if the Iran conflict drags on, which will have an impact on buyer confidence.
“And we are still waiting to see precisely what Andy Burnham’s vision for the housing market will be. Until that picture becomes a bit clearer, the market will continue to be dominated by those who need to move, rather than those testing the waters.”
Richard Donnell, executive director of research at Zoopla, commented: “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.”
