UK House Price Index Update: July 2026
House prices ticked up in May, but the annual pace of growth is slowing. Here’s what the latest UK House Price Index means for buyers and sellers.
The UK House Price Index (HPI) is updated monthly, with July’s release reflecting changes that took place across the UK during May 2026. It’s been a fairly steady month, though the pace of annual growth has cooled a little.
So, here are the headlines.
The HPI headlines
According to the latest government data, the average price of a home in the UK in May 2026 was £271,000. On average, this reflects a month-to-month rise of 0.3%, and an annual price rise of 2.7%, down from 3.9% the month before.
So while prices are still higher than they were a year ago, the annual rate of growth is slowing. This is worth keeping in mind if you’re comparing this release to previous months.
Regional breakdown
The average price of a home in England was £292,000, up 2.3% annually, with prices edging up 0.1% month-on-month. The North East recorded the strongest annual growth at 5.9%, while London saw the weakest performance, with prices down 3.7% year-on-year. On a monthly basis, the North West saw the largest increase (+1.4%), while London saw the biggest monthly fall (-1.2%).
In London, the average property price was £545,000, continuing the capital’s softer performance compared to other regions.
In Wales, prices rose 4.2% over the year to an average of £215,000, with a further monthly increase, making it one of the stronger performing areas in this release.
This month’s release doesn’t include updated figures for Scotland or Northern Ireland, as Northern Ireland data is published quarterly.
UK house prices
UK house prices rose by 2.7% in the year to May 2026, down from a revised 3.9% in the year to April 2026. On a non-seasonally adjusted basis, prices rose by 0.3% between April and May 2026, a smaller monthly rise than the 1.5% seen over the same period a year earlier, which is largely why the annual rate has slowed.
There were an estimated 98,000 residential property transactions in May 2026 (seasonally adjusted), which is 16.6% higher than a year ago. This was, however, a 2% decrease compared with April 2026.
What’s happening to house prices near me?
Curious about house prices in your area? Dive into your local neighbourhood’s house prices with our interactive House Price Index tool. You can also see the average cost of homes near you and how different property types are performing.
And if you’d like to know exactly what your home is worth right now, whether you’re thinking of selling or planning your next move, book a free valuation to get started.