TL;DR
UK house prices rose 2% in the year to June 2026, taking the average property value to £272,000. But that average hides a divided market. The North West rose 4.7%, London fell 2.5%, and flats continued to underperform houses. This is not one housing market moving together.
UK house prices are rising again. At least, that is what the national headline says.
The latest official UK House Price Index shows the average property was worth £272,000 in June 2026. Prices increased by 2% over the year and by just 0.1% between May and June.
That sounds fairly calm. Dig into the numbers, though, and Britain’s housing market looks far less tidy. Some regions are still growing strongly. London is cheaper than it was a year ago. Houses are outperforming flats. Transaction numbers have improved annually but slipped slightly month to month.
The UK average is slowing
Annual UK price growth was 2% in June, down from a revised 3% in May. That is still growth, but it is not acceleration.
The monthly increase was only 0.1%. In practical terms, the national market was close to flat during June. That matters because a 2% annual rise can sound stronger than the latest monthly momentum actually is.
The regional divide is the real story
England’s average property value reached £293,000, up 1.8% over the year. But the regional range was enormous.
The North West recorded the strongest annual growth at 4.7%, closely followed by the North East at 4.3%. London moved in the opposite direction, falling 2.5% annually to an average of £554,000.
| English region | Average price | Annual change | Monthly change |
|---|---|---|---|
| East Midlands | £240,000 | +2.4% | -0.7% |
| East of England | £339,000 | +1.1% | -0.2% |
| London | £554,000 | -2.5% | +1.0% |
| North East | £166,000 | +4.3% | +1.0% |
| North West | £220,000 | +4.7% | +0.4% |
| South East | £380,000 | +0.3% | -0.3% |
| South West | £305,000 | +1.9% | +0.6% |
| West Midlands | £251,000 | +2.6% | +1.0% |
| Yorkshire and the Humber | £208,000 | +3.6% | -0.6% |
The figures show why national housing headlines are often more entertaining than useful. A buyer in London, where annual prices fell, is not dealing with the same market as a buyer in the North West, where prices rose almost 5%.
My view: a national average is useful for understanding direction. It is useless for valuing a specific house. Your postcode, property type and buyer pool matter far more than the UK headline.
Houses are outperforming flats
The split is not only geographical. In England, semi-detached homes recorded the strongest annual increase among the main property types at 3.2%. Terraced homes rose 2.8% and detached homes increased 2%.
Flats and maisonettes fell by 2.3%, taking the average value from £224,000 to £219,000.
| Property type in England | June 2026 | June 2025 | Annual change |
|---|---|---|---|
| Detached | £475,000 | £465,000 | +2.0% |
| Semi-detached | £291,000 | £282,000 | +3.2% |
| Terraced | £246,000 | £240,000 | +2.8% |
| Flat or maisonette | £219,000 | £224,000 | -2.3% |
London’s flat market was weaker again. The average London flat or maisonette fell 4.7% annually, from £452,000 to £431,000. London detached homes fell 0.7%, while semi-detached homes managed a small 0.6% increase.
There is no single reason every flat underperforms, but affordability, service charges, leasehold concerns, building safety issues and changing space preferences can all affect demand. The data tells us what happened to prices. It does not prove one universal cause.
What first-time buyers are paying
The average price paid by a first-time buyer in England was £245,000, up 1.8% annually. Former owner occupiers paid an average of £357,000, also up 1.8%.
Mortgage-funded buyers paid an average of £299,000, compared with £279,000 for cash buyers. That does not mean using a mortgage makes the same property £20,000 more expensive. These are averages across different groups of transactions and properties.
Transactions are holding up, but not surging
HMRC estimated that 99,000 UK residential transactions worth at least £40,000 completed in June on a seasonally adjusted basis.
That was 2.5% higher than in June 2025, but 0.2% lower than in May 2026. Activity has improved over the year, although the latest monthly change does not suggest buyers suddenly rushed back into the market.
The figures are backward-looking and revisable
The UK HPI is based on completed transactions. HM Land Registry warns that purchases typically take 6 to 8 weeks to complete, so the June index reflects deals agreed under earlier market conditions.
The data is also revised as more transactions are registered. The formal revision period now extends to 13 months. That makes the index one of the best measures of achieved prices, but not a live measure of what buyers are offering today.
The trap
Treating one monthly figure as a forecast. The June index tells us what completed. It does not tell us what mortgage rates, buyer confidence or prices will do next.
What the June data means for you
| If you are… | What the data suggests | What to check next |
|---|---|---|
| A first-time buyer | The average English first-time buyer price was £245,000, up 1.8% annually | Local sold prices, mortgage cost and service charges |
| Buying a flat | Flat values were weaker nationally and particularly weak in London | Lease length, cladding, ground rent and service-charge history |
| Selling in London | The annual market was down, even though June recorded a monthly rise | Comparable completed sales, not optimistic asking prices |
| Investing in northern England | Annual growth was strongest in the North West and North East | Rental yield, tenant demand and whether the local price already reflects the growth |
| Reading one month of data | The UK rose only 0.1% between May and June | Revisions, transaction volumes and the longer trend |
Is the UK housing market booming?
No. Prices are rising nationally, but annual growth has slowed, monthly movement is minimal and major parts of the market are moving in different directions.
The strongest areas are concentrated outside London and the South East. Flats are struggling relative to houses. Transaction activity is only modestly higher than a year ago.
The bottom line
UK house prices are not collapsing, but they are not moving together either. The June figures reward anyone who looks beyond the national average. The market that matters is the one for your property type, in your area, at the borrowing cost available to you.
Related reading
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Sources and further reading
- HM Land Registry: UK House Price Index for June 2026
- GOV.UK: UK House Price Index reports
- HMRC: monthly UK property transactions
- Rentals London: featured-image source
This article is for general information only. It is not personal financial, mortgage or investment advice. House price statistics are estimates and can be revised.
Written by Aren Deu | The Anxious Investor
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