Annual house price growth has slowed for the third consecutive month, Land Registry data shows.
The latest Land Registry House Price Index revealed that average house price annual inflation was 1.4% in July.
It is down from the revised estimate of 1.5% in the 12 months to June 2026.
The third consecutive month of slower growth was driven primarily by a sharp slowing in the annual rate for the South West, with London and the West Midlands also contributing to the decline, according to the Land Registry.
On a seasonally adjusted basis, average house prices in Britain decreased by 0.2% between June 2026 and July 2026 but are up 0.7% on a non-seasonal adjustment. It puts average house prices at £272,611.
Average house prices
Average house prices in the 12 months to July 2026 increased 1.1% in England to £293,000, by 2.6% in Wales to £215,000 and by 2.3% in Scotland to £196,000. In Northern Ireland, prices in the second quarter of 2026 rose 9.2% annually to £202,000.
Of the English regions, annual house price inflation was highest in the North East, where prices rose by 4.9% in the 12 months to July 2026.
London had the lowest annual inflation, down 3.3% annually. This is the eleventh consecutive month of London average prices falling, with Inner London particularly affected, and represents the lowest annual rate for the capital since January 2024.
Industry reaction
Nick Leeming, Chairman of Jackson-Stops, says: “The figures point to a market where realistic pricing increasingly determines which homes sell and those that stall. Across our network, we are seeing a number of properties coming to market with us when they have struggled to secure a buyer with other agents. In many of these cases, getting the price right for current market conditions is proving key to generating renewed interest and ultimately achieving a sale.
“Buyers are still there, but they are informed, selective and have more choice. That means sellers cannot rely on testing the market at an ambitious price and expecting buyers to follow. Homes that are well presented and realistically priced are attracting attention, while those that start too far ahead of buyer expectations risk losing momentum during the crucial first weeks of marketing.
“This is not a market without demand, but it is one in which price and strategy matter considerably. With borrowing costs and the wider cost of moving continuing to shape affordability, sellers who are serious about moving need to respond to the market ahead of them rather than the market of a year or two ago.”
Nathan Emerson, Chief Executive at Propertymark, says: “As we head into the autumn months, it’s encouraging to see strength within the housing market. Across the year, we have seen many key indicators demonstrate just how challenging it has been for would-be home movers in terms of affordability.
“Despite consumer headwinds, the market has broadly remained resilient in terms of average house prices across many regions. There are still challenges yet to overcome, and tomorrow’s base rate decision from the Bank of England will likely set the tone over the coming months regarding overall market confidence.
“In addition, we are now only a matter of weeks away from the next Budget, which may also prove significant for many who are contemplating a house sale or purchase.”
Iain McKenzie, Chief Executive of The Guild of Property Professionals, says: “While the pace of house price growth has eased, the fact that prices continue to edge upwards is significant given the pressures households are facing.”
“As we move into autumn, the key question is whether the usual seasonal uplift in activity can gather momentum while mortgage rates remain high and inflation being pushed higher by fuel and energy costs. The housing market is having to operate against a much more volatile economic backdrop than we would normally expect at this time of year.
“There are some encouraging signs. Consumer confidence has improved and we are seeing renewed buyer interest as people return from the summer and revisit moving plans. Political reassurance around property taxation also appears to have helped sentiment, although it is far too early to say whether the improvement in demand will prove lasting.
“Ultimately, affordability remains the defining factor. Buyers are still active, but they are more cautious and much more sensitive to the cost of borrowing. That means we should expect an autumn market where good-quality, realistically priced homes attract attention, while properties that stretch buyers’ budgets may take longer to sell.
“The market isn’t standing still, but neither is it operating in normal conditions. A resilient autumn is possible, but activity is likely to be measured rather than spectacular.”
Nicky Stevenson, Managing Director of Fine & Country, says: “Behind the latest figures is a market where buyers have more choice and remain highly conscious of affordability.
“That makes pricing more important than ever as we head into autumn. Traditionally, September and October bring a renewed wave of activity as people return to routine and pick up moving plans that were put on hold over the summer. But this year, sellers cannot assume that increased autumn demand will automatically translate into a sale.
“Mortgage costs, household bills and wider economic uncertainty are all influencing what buyers can and are prepared to pay. At the same time, competition between sellers is intense. With a significant proportion of properties remaining on the market without a price reduction, there is a clear message for anyone considering a move: getting the asking price right at launch is critical.
“Overpricing can be particularly costly in the current market. A property that misses the initial window of buyer interest can quickly become stale, and sellers may ultimately have to reduce the price after losing valuable time.
“The encouraging news is that buyers are still there. The challenge is matching their expectations with realistic pricing. For sellers, autumn should be approached with a clear understanding of local market conditions, strong presentation and, above all, a price that reflects where the market actually is rather than where they would like it to be.”
