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.

ONS: UK Annual House Price Growth Slows to 2.7% in May 2026

UK annual house price growth slowed to 2.7% in May 2026, according to the latest figures from the Office for National Statistics (ONS). The average UK property is now valued at £271,000, with the annual growth rate easing from 3.9% in April.

The ONS attributed the slowdown to a base effect following changes to Stamp Duty Land Tax (SDLT) in England and Northern Ireland in April of the previous year. Between April and May 2026, average house prices increased by 0.3%, compared to a 1.5% rise during the same period in 2025.

In England, the average property price reached £292,000, representing a 2.3% (£6,000) increase year-on-year. This is a decrease from the 4% annual growth recorded in April. Wales and Scotland both saw stronger annual growth than England, with average house prices in Wales rising 4.2% to £215,000, and prices in Scotland increasing 4.4% to £196,000.

Northern Ireland recorded the strongest growth among the UK nations. Average prices there reached £198,000 in the first quarter of 2026, up 7.4% compared to the same period a year earlier.

Within England, the North East remained the fastest-growing region, though annual price inflation slowed to 5.9% from 9.7% in April. London was the weakest-performing region, with average house prices falling by 3.7% over the year to May. This marks the ninth consecutive month of annual declines in the capital, driven largely by inner London, where prices dropped 5.9%. Notable falls were recorded in Westminster and Tower Hamlets.

These regional trends may be relevant for letting agents and inventory clerks monitoring market conditions and property values across the UK.