Average UK house prices rose 1.4% in the 12 months to July 2026 to £273,000, down from 1.5% in June, according to the UK House Price Index published on 16 September by HM Land Registry and the Office for National Statistics (ONS). In the same release, the ONS said average UK private rents rose 3.8% in the 12 months to August to £1,400 a month — £52 more than a year earlier and up from 3.7% in July — the highest annual rent inflation since December 2025. The ONS attributed the pickup mainly to London, where annual rent growth rose to 3.5%, its highest since October 2025, with the average London rent at £2,332.
The slowdown in prices is uneven across the country. Prices rose 1.1% in England to £293,000, 2.6% in Wales to £215,000 and 2.3% in Scotland to £196,000, while Northern Ireland recorded 9.2% growth to £202,000 in the second quarter. Within England, the North East led at 4.9%, whereas London prices fell 3.3%, the weakest of any region — the eleventh consecutive month of annual falls, PA News reported, with Financial Reporter putting the average London price at £569,000, £19,000 below its July 2025 peak. By property type, flats fell 2.4% while semi-detached houses gained 2.9%; new-build prices rose 8.1% against 2.7% for existing homes. On rents, England rose 4.0%, Wales 4.3%, Scotland 1.1% and Northern Ireland 1.6% (to June); the North East and North West saw the fastest rent growth at 5.8%, the South East the slowest at 3.0%.
The figures were published alongside separate ONS data showing Consumer Prices Index inflation rose to 3.1% in August from 2.9% in July, PA News reported. Chris Storey, chief commercial officer at Atom Bank, told Financial Reporter the data “marks a turning point in house price growth” and, citing the more recent Lloyds index which reported the first annual price fall in three years, said further falls were likely in next month’s official data. Amy Reynolds, head of sales at estate agency Antony Roberts, said rental supply “remains tight as landlords continue to leave the sector, so tenants face stiff competition”. Nathan Emerson, chief executive of Propertymark, told Property Reporter that the average salary required to rent “typically sits at £42,000”. The next UK HPI release, covering August, is due on 21 October 2026.
References
GOV.UK – UK House Price Index summary: July 2026 / Office for National Statistics – Private rent and house prices, UK: September 2026 / Financial Reporter – Annual house price growth dips to 1.4%: UK HPI / Property Reporter – UK private rents rise 3.8% as London drives renewed acceleration: ONS / Kent Online – Annual house price growth slows but private rent increases accelerate
