{"id":705646,"date":"2026-07-22T17:58:21","date_gmt":"2026-07-22T17:58:21","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/705646\/"},"modified":"2026-07-22T17:58:21","modified_gmt":"2026-07-22T17:58:21","slug":"annual-uk-house-price-inflation-slowed-to-reach-2-7-in-may-says-ons","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/705646\/","title":{"rendered":"Annual UK house price inflation slowed to reach 2.7% in May, says ONS"},"content":{"rendered":"

\"The<\/a> The ONS said that the slowing in the UK annual rate of house price inflation was caused by a \u2018base effect\u2019 from the aftermath of stamp duty changes in England and Northern Ireland in April 2025 (John Giles\/PA) (PA Archive) <\/p>\n

The average UK house price increased by 2.7% in the 12 months to May, slowing from a 3.9% annual increase in April, the Office for National Statistics (ONS) has said. <\/p>\n

Across the UK, the typical house price in May was \u00a3271,000. <\/p>\n

Average house prices increased in May to \u00a3292,000 (a 2.3% annual increase) in England<\/a>, \u00a3215,000 (4.2%) in Wales, and \u00a3196,000 (4.4%) in Scotland. <\/p>\n

\"(PA<\/a> (PA Graphics) (PA Graphics) <\/p>\n

The average house price for Northern Ireland<\/a> was \u00a3198,000 in the first quarter of 2026 \u2013 a 7.4% annual increase. <\/p>\n

Within England, the North East was the region with the highest annual house price inflation in May, at 5.9%. <\/p>\n

London had the weakest annual house price inflation, with prices there falling by 3.7% annually in May. <\/p>\n

This is the ninth month in a row with an annual fall in house prices in London, the report said. <\/p>\n

Richard Donnell, executive director of research at Zoopla said: “Political change, the World Cup, a scorching summer and elevated mortgage rates have hit housing market activity this summer. <\/p>\n

“Zoopla’s very latest data shows 20% fewer buyer inquiries than a year ago and 7% fewer sales agreed. <\/p>\n

“This comes as annual house price growth in the ONS<\/a> index has already slowed to 2.7% in the 12 months to May. We expect activity to pick up in the autumn as the outlook becomes clearer.” <\/p>\n

The ONS said that the slowing in the UK annual rate of house price inflation was caused by a “base effect” from the aftermath of stamp duty changes in England and Northern Ireland in April 2025, which was similar to stamp duty effects seen previously. <\/p>\n

Its report said: “The annual rate slowed in May 2026 because average UK house prices rose by a smaller amount (0.3%) between April and May 2026 than in the same period a year ago (1.5%).” <\/p>\n

The average monthly private rent in the UK was \u00a31,388 in June \u2013 \u00a344 (3.3%) higher than 12 months earlier \u2013 the ONS said. <\/p>\n

<\/a> <\/p>\n

The figures were released as the ONS also said that the Consumer Prices Index (CPI) rate slowed reach to 2.6% in June, from 2.8% in May. <\/p>\n

This was the lowest level since March 2025, and below a 2.7% rate expected by some economists. <\/p>\n

Mark Harris<\/a>, chief executive of mortgage broker SPF Private Clients, said: “Inflation<\/a> easing to 2.6% is welcome news as far as interest rates are concerned but renewed tensions in the Middle East mean the inflationary threat has not completely rescinded. <\/p>\n

“Although the Bank of England is expected to hold base rate again next week, rising swap rates, which underpin mortgage pricing, have led a number of lenders to increase their mortgage rates, with others expected to follow.” <\/p>\n

Story continues <\/p>\n

He added: “The higher cost of living is impacting household affordability, which means those buying a home are being careful as to what they are prepared to spend.” <\/p>\n

David Hollingworth, associate director at L&C Mortgages said: “The mortgage market had been moving in a positive direction, with lenders gradually reducing rates and giving borrowers improved choice. <\/p>\n

“However, that downward momentum has ground to a halt, as uncertainty in financial markets has pushed lenders’ funding costs higher, prompting a growing number to increase their fixed-rate deals.” <\/p>\n

He added: “Borrowers shouldn’t feel they have to panic, but they also shouldn’t delay reviewing their options. <\/p>\n

“Mortgage rates can move quickly, as we have seen over the past week, so anyone approaching the end of their current deal or planning to buy a home should consider securing a competitive rate sooner rather than later. <\/p>\n

“Most lenders will still allow borrowers to switch to a cheaper deal before completion if rates ease again, giving them certainty now and flexibility if the market moves in their favour later down the line.” <\/p>\n

Jason Tebb, president of OnTheMarket, said: “Lenders have started increasing their mortgage rates on the back of higher swap rates, but with inflation easing to 2.6% in the year to June, hopefully the Bank of England will hold base rate again at the next meeting.” <\/p>\n

Iain McKenzie, chief executive of The Guild of Property Professionals, said: “With more homes available than we’ve seen for some time, purchasers are spoiled for choice, and sellers face much greater competition. <\/p>\n

“In this environment, realistic, evidence-based pricing is essential. <\/p>\n

“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.” <\/p>\n

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “Today’s figures are positive for sellers and show that the housing market remains resilient despite domestic and international pressures. <\/p>\n

“However, affordability concerns continue to challenge many buyers, particularly first-time buyers.” <\/p>\n

Karen Noye, a mortgage expert at wealth manager Quilter said: “For buyers, the key point is not simply what a lender is willing to offer, but what remains comfortably affordable. <\/p>\n

“Stretching to the maximum may feel necessary in a competitive market, but it leaves little room for unexpected costs, income changes or future rate volatility. <\/p>\n

“Building in a margin for error can help ensure a purchase remains sustainable even if economic uncertainty persists for longer than expected.” <\/p>\n

Sarah Coles, head of personal finance at AJ Bell, said the summer house price figures “could be a tough read, reflecting loss of confidence and stretched affordability after the start of the Iran war”. <\/p>\n

She added: “Recent mortgage rate rises could send many buyers back into a ‘wait and see’ pattern.” <\/p>\n","protected":false},"excerpt":{"rendered":"The ONS said that the slowing in the UK annual rate of house price inflation was caused by…\n","protected":false},"author":2,"featured_media":705647,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[234042,84,1294,309,141632,84314,11750,14517,56,54,55],"class_list":["post-705646","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-annual-increase","tag-business","tag-economy","tag-england","tag-house-price","tag-mortgage-rate","tag-mortgage-rates","tag-ons","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/705646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=705646"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/705646\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/705647"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=705646"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=705646"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=705646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}