UK house price growth slowed for the third consecutive month in July, while London recorded its eleventh straight month of annual price falls.
Average UK house prices increased by 1.4% in the year to July, according to provisional figures from the Office for National Statistics (ONS).
That was down from annual growth of 1.5% in June.
The average UK property was valued at £273,000 in July, although the headline figure masks significant regional differences.
In England, average prices increased by 1.1% to £293,000. Wales recorded stronger annual growth of 2.6%, taking its average to £215,000.
Meanwhile, prices in Scotland increased by 2.3% to an average £196,000.
London prices fall again
For agents in the capital, the figures point to continued pressure on values.
London remained the weakest-performing English region, with average prices falling 3.3% over the year to July. That compares with a 3.1% annual decline in June.
It marked the eleventh consecutive month of annual house price falls in the capital.
The average London property was valued at £569,000. That is £19,000 below the recent peak recorded in July 2025.
Inner London recorded particularly weak price performance, according to the ONS. The capital’s annual decline was its largest since January 2024.
The South West and West Midlands also contributed to the slowdown in overall English house price growth.
‘Realistic pricing increasingly determines which homes sell’
Nick Leeming, chairman of national estate agency Jackson-Stops, said the figures reinforced the importance of getting asking prices right from the start.
He commented: “Today’s 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.”
North East leads English regions
At the other end of the market, the North East recorded England’s strongest annual growth.
Average prices increased 4.9% in the 12 months to July, accelerating from 4% in June.
The figures underline the widening difference in price performance between parts of northern England and London.
Northern Ireland recorded the strongest growth of any UK nation. Average prices reached £202,000 during the second quarter of 2026, up 9.2% year-on-year.
That represented an increase of around £17,000 and was Northern Ireland’s strongest annual growth since the final quarter of 2022.
Prices increased 2.1% between the first and second quarters of this year. By comparison, they rose just 0.6% over the same period in 2025.
Rates and Budget in focus
Nathan Emerson, CEO at Propertymark, said attention would now turn to the Bank of England and the forthcoming Budget.
He commented: “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.”
Figures remain provisional
The latest UK House Price Index figures remain provisional and could be revised as the ONS receives more transaction data.
Its initial July estimate covers sales volumes representing around half of transactions completed across Great Britain during the month.
The ONS also cautioned that transaction volumes for more recent periods and new-build properties remain below historical levels.
