Regional differences remain but London prices may be bottoming out
Price growth has weakened, with average UK house prices increasing by 2.0% to £272,000 in the 12 months to June 2026, down from 3.0% in the 12 months to May 2026, according to the latest ONS House Price Index figures. On a monthly basis they grew only 0.1% between May and June 2026, compared with a 1% increase in the same period last year.
The ONS said the sharp slowdown in UK house price annual inflation was because price growth has been weaker this summer than it was last year in the months following the April 2025 Stamp Duty Land Tax.
Regionally, the figures continue to vary widely, especially between London and the north. However, the situation in the capital might finally be improving for would-be buyers, according to Jonathan Hopper, CEO of Garrington Property Finders. Average prices in London fell by 2.5% in the 12 months to June 2026, compared to a fall of 3.1% in the 12 months to May 2026.
Have prices bottomed out?
Hopper said: “London’s long and painful correction is finally easing. Property values in the capital have fallen on an annual basis for 10 months in a row, but there are increasing signs that prices have finally bottomed out.
“On a monthly basis, prices surged back to growth in June. The average London property jumped in value by £9,000 over the month, and while one month of Land Registry data does not a summer make, we may have reached a tipping point as tactical buyers who’d been waiting for the right moment to strike return to the London market,” he said.
But Hopper said he was encouraged by the signs for September. “Huge regional differences remain and while national price growth continues to slow, the market is finding more equilibrium after a volatile start to the year,” he said.
“September is traditionally a busy month for estate agents and the firmer footing revealed by this data should be an encouraging place from which to start.”
Uncertainty around future growth
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, was also encouraged by the figures. “As this data covers mortgaged and cash sales, so is the most comprehensive of price surveys, it is particularly interesting to note price growth is holding up better than we’d dared hope,” he said.
“On the other hand, the figures reflect activity mainly from several months ago and not the period since the change in prime minister, though worries about mortgage rates and inflation persist.
Nathan Emerson, CEO of Propertymark, said it could be a question of wait and see, however. “It will be a case of closely watching how matters progress over the coming months, as significant uncertainty remains, particularly when considering the wider global economy,” he said.
