Annual UK house price growth slowed to 2.7% in May from 3.9% in April, while annual private rent inflation remained unchanged at 3.3% in June, the latest figures from the Office for National Statistics (ONS) revealed.

Average UK house prices reached £271,000 in May, with prices rising 2.3% in England to £292,000, 4.2% in Wales to £215,000 and 4.4% in Scotland to £196,000. Northern Ireland recorded annual growth of 7.4% in the first quarter of 2026.

The slowdown in house price annual inflation rate was caused by the stamp duty land tax changes in England and Northern Ireland in April last year, the ONS said.

London remained the weakest-performing region, with house prices falling 3.7% year-on-year for a ninth consecutive month, while the North East recorded the strongest annual growth at 5.9%.

The data also found that average monthly private rents across the UK rose to £1,388 in June, up 3.3% from a year earlier.

Rents increased by 3.4% in England to £1,446, 4.9% in Wales to £843, 1.3% in Scotland to £1,012 and 2.9% in Northern Ireland to £877. The North East recorded the fastest annual rental growth in England at 6.3%, while London saw the slowest increase at 2.2%, despite remaining the UK's most expensive rental market with average monthly rents of £2,302.

Chris Storey, chief commercial officer at Atom bank, commented that new Prime Minister, Andy Burnham, has promised a dramatic improvement in the number of council houses built across the country. "But he will also need to oversee an improvement in the number of private developments if we are to ensure home ownership becomes more affordable and achievable,” Storey said.

Nathan Emerson, CEO of Propertymark, echoed the sentiment, arguing that Burnham's arrival in Downing Street provided a level of uncertainty surrounding the UK Government’s housing policy continuing, which could weigh on consumer confidence over the coming months as well.

He added: "Today’s 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."

Alex Upton, managing director of specialist mortgages and bridging finance at Hampshire Trust Bank, concluded: "Average asking rents remain at record highs, but the pace of growth is very different to what we saw over the last couple of years. That's creating a more balanced market, which tends to suit landlords taking a longer-term view rather than relying on rapid rental inflation."

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