Annual UK house price growth slowed to 2.7% in May, with the average property now valued at £271,000, according to the latest figures from the Office for National Statistics (ONS).
Average house prices increased by 0.3% between April and May 2026, compared with a 1.5% rise over the same period in 2025.
The ONS attributed the slowdown in growth to a base effect following changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland in April last year.
Here’s how leaders in the industry have reacted to the figures:
Nathan Emerson, CEO of Propertymark, said: “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 latest 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.”
Nick Leeming, chairman of national estate agency Jackson-Stops, said: “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.
“Recent indicators suggest buyers are becoming increasingly selective as affordability pressures and borrowing costs continue to influence decision-making. Our latest research found that 42% of those whose moving plans had been delayed cited economic uncertainty as a reason, underlining the importance of greater stability and policy certainty in sustaining market activity. This is creating a more considered market where transactions are being driven by value and quality rather than urgency.
“There is also a strong case for addressing the costs that discourage existing homeowners from moving. Our latest research suggests that removing Stamp Duty costs could bring more than 300,000 owner-occupied homes onto the market across England within less than a year. Unlocking even part of that potential supply would increase choice, enable more people to move into homes that better meet their needs and help transactions flow more freely across the market
“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.”
Iain McKenzie, CEO of the Guild of Property Professionals, said: “The figures show that house price growth remains positive, but the pace of appreciation is cooling as the market adjusts to a more challenging economic backdrop. Buyers are taking longer to make decisions, are negotiating harder and are far more sensitive to price than they have been in recent years.
“With more homes available than we’ve seen for some time, purchasers are spoiled for choice, and sellers face much greater competition. In this environment, realistic, evidence-based pricing is essential. Homes launched at the right price continue to attract interest and secure sales, whereas properties brought to market too ambitiously are taking significantly longer to sell after price reductions.
“While activity has softened month-on-month, it’s important to keep the wider picture in perspective. Transaction levels remain ahead of last year, demonstrating that there is still healthy underlying demand from buyers whose moves are driven by life events rather than market timing. Attention will now turn to the Bank of England’s next interest rate decision, which will play an important role in shaping confidence during the second half of the year.”
Ben Nichols, CEO of RAW Capital Partners, said: “This annual house price growth straddles two markedly different six-month periods. The second half of 2025 was defined by a sense of relative calm and stability, with inflation largely under control and interest rates steadily falling. In the past six months, by contrast, we have witnessed significant geopolitical and economic uncertainty, which has impacted swap rates and, in turn, the lending market. Throughout it all, the housing market has evidently remained resilient, and though recent volatility has undoubtedly impacted buyer confidence, we are still seeing notable interest in UK residential property from both domestic and overseas investors.
“As ever, the devil is in the detail, and the regional differences within today’s ONS data are noteworthy. For instance, average property prices in London have fallen by 3.7% since May 2025, while those in the North East have jumped 5.9% in that time.
“In our work with brokers and borrowers, it’s important that lenders recognise these market trends. Ultimately, it underlines why a flexible approach to assessing mortgage applications is so important – as ‘uncertainty’ remains a watchword across the property industry, pragmatism is a vital quality in providing much-needed certainty to those seeking mortgages for themselves or their clients.”
Stacy Eden, national head of real estate at RSM UK, said: “The May house price data is unsurprising, highlighting stagnation in the housing market as house prices flatline. This is particularly evident in areas of high house prices such as London, where penal rates of Stamp Duty Land Tax (SDLT) are most keenly felt.
“As Andy Burnham begins his premiership, we’d urge the new prime minister to prioritise a review of planning reforms and tax policy to help stimulate the UK’s stagnating housing market.
“Andy Burnham’s premiership may mean a review of stamp duty is on the cards, as he has previously expressed his dislike of the tax. However, scrapping stamp duty altogether, or replacing it with an alternative, will need some careful thought, as it brings in around £15bn a year in revenue.
“We’d like to see the government revisit current policy to create a fairer and less penal system. Currently buyers are put off moving due to high stamp duty fees, significantly decreasing liquidity and transactions in the market.
“While we recognise some of the issues impacting housing supply are outside of the government’s control, high taxes, long planning processes, and a lack of skilled workers are all currently hampering housing development. Research from the Home Builders Federation reveals that £76,000 has been added to the cost of building a home since 2020, of which £30,000 is due to increased regulation and taxation.
“We’d like to see Andy Burnham’s government take a more long-term and holistic approach to planning policy and real estate taxation, which would enable the sector to thrive and improve the viability of developments. Introducing a penal land tax would again be another cost for developers to consider, stymying growth.”
