Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

House price growth slows for third month as agents warn on pricing

UK house price growth slowed for the third consecutive month in July, according to provisional Office for National Statistics (ONS) figures, while London recorded its eleventh straight month of annual price falls. Average UK house prices increased by 1.4% in the year to July, down from 1.5% in June, with the average UK property valued at £273,000.

Regional picture

Beneath the headline figure, regions diverged sharply. In England, average prices rose 1.1% to £293,000, while Wales recorded stronger annual growth of 2.6% to an average of £215,000 and Scotland saw prices increase 2.3% to £196,000.

London remained the weakest-performing English region, with average prices falling 3.3% over the year to July. That was steeper than the 3.1% recorded in June and the capital's largest annual fall since January 2024. The average London property was valued at £569,000, £19,000 below the recent peak recorded in July 2025. Inner London showed particularly weak price performance, according to the ONS.

At the other end of the scale, the North East recorded England's strongest annual growth, with prices up 4.9% in the 12 months to July, accelerating from 4% in June. The South West and West Midlands also contributed to the slowdown in overall English house price growth.

Northern Ireland recorded the strongest growth of any UK nation, with average prices reaching £202,000 in the second quarter of 2026, up 9.2% year-on-year. That is an increase of around £17,000 and the nation's strongest annual growth since the final quarter of 2022. Prices rose 2.1% between the first and second quarters of this year, compared with 0.6% over the same period in 2025.

Pricing warning

Nick Leeming, chairman of national estate agency Jackson-Stops, said the figures reinforced the importance of getting asking prices right from the start. He commented: "Today's figures point to a market where realistic pricing increasingly determines which homes sell and those that stall."

He said a number of properties were coming to market with Jackson-Stops after struggling to secure a buyer with other agents, and that getting the price right for current market conditions was proving key to generating renewed interest and achieving a sale.

"Buyers are still there, but they are informed, selective and have more choice," he said, warning that sellers cannot rely on testing the market at an ambitious price. Homes that are well presented and realistically priced are attracting attention, while those starting too far ahead of buyer expectations risk losing momentum during the crucial first weeks of marketing.

He added that with borrowing costs and the wider cost of moving continuing to shape affordability, sellers who are serious about moving need to respond to the market ahead of them rather than the market of a year or two ago.

What it means for agents

For letting agents and inventory clerks, the figures point to a market where accurate valuation and realistic pricing are increasingly decisive. Properties that have failed to sell elsewhere may arrive needing careful, evidence-based pricing advice.