Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
House price growth falls for third consecutive month, Land Registry reveals
Annual house price growth has slowed for the third consecutive month, according to the latest Land Registry House Price Index. Average annual inflation was 1.4% in the 12 months to July 2026, down from a revised estimate of 1.5% for the year to June 2026.
The slowdown was driven primarily by a sharp slowing in the annual rate for the South West, with London and the West Midlands also contributing.
Average prices and regional picture
On a seasonally adjusted basis, average house prices in Britain fell 0.2% between June 2026 and July 2026, though they are up 0.7% on a non-seasonally adjusted basis. Average prices now stand at £272,611.
Across the UK nations, average prices in the 12 months to July 2026 rose 1.1% in England to £293,000, 2.6% in Wales to £215,000 and 2.3% in Scotland to £196,000. In Northern Ireland, prices rose 9.2% annually in the second quarter of 2026 to £202,000.
Among the English regions, annual house price inflation was highest in the North East, where prices rose 4.9% in the year to July 2026. London recorded the lowest annual inflation, falling 3.3%. This marks the eleventh consecutive month of falling average prices in the capital, with Inner London particularly affected, and is the lowest annual rate for London since January 2024.
Industry reaction
Nick Leeming, Chairman of Jackson-Stops, said the figures point to a market where realistic pricing increasingly determines which homes sell and which stall. Buyers remain active but are informed, selective and have more choice, he noted, so well presented and realistically priced homes attract attention while properties priced ahead of buyer expectations risk losing momentum in the first weeks of marketing. He added that borrowing costs and the wider cost of moving continue to shape affordability.
Nathan Emerson, Chief Executive at Propertymark, said the market has broadly remained resilient in terms of average prices across many regions despite affordability challenges for would-be movers. He pointed to the Bank of England's base rate decision and the upcoming Budget as factors likely to influence market confidence in the coming months.
Iain McKenzie, Chief Executive of The Guild of Property Professionals, said that while the pace of growth has eased, the fact prices continue to edge upwards is significant given the pressures households face. He highlighted that mortgage rates remain high and inflation is being pushed higher by fuel and energy costs as the market heads into autumn.
What it means for agents
The continued deceleration in price growth, and the sharp regional variation between London and the North East, make accurate valuations and realistic pricing advice more important for agents. With vendors' expectations shaped by an earlier market, pricing strategy and presentation look set to remain decisive as the autumn season progresses.
Source: The Negotiator