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

ONS: UK House Prices Rise 2.7% Annually, Regional Gaps Widen

UK house prices increased by 0.3% month-on-month and 2.7% year-on-year in May 2026, according to the latest data from the Office for National Statistics (ONS). The average property value reached £271,000, with annual growth slowing from 3.9% in April 2026.

The monthly rise of 0.3% was lower than the 1.5% increase recorded in May 2025. The data highlights a resilient but moderating market, with notable differences across regions and property types.

Regional Performance

Regional disparities widened, with Northern England showing the strongest growth. The North West recorded the largest monthly price increase at 1.4%, while the North East saw the highest annual rise at 5.9%. The North East also had the lowest average house price in England at £164,000.

London was the only region to see a decline, with a 1.2% monthly fall and a 3.7% annual decrease. The average property price in London stood at £545,000, the highest in the UK.

Buyer Types and Price Trends

Mortgaged buyers continued to pay the highest average prices, at £298,000, and experienced the largest annual price growth at 2.4%. First-time buyers paid the lowest average price, at £244,000. Cash buyers saw the smallest annual price growth at 2.1%.

Property Types

Price changes varied by property type. Semi-detached homes saw the strongest annual growth, rising 4.1% from £279,000 to £291,000. Flats and maisonettes remained the lowest priced category, averaging £217,000, with a 2.2% annual decrease. Across all property types, prices rose 2.3% annually from £286,000 to £292,000.

New-Builds vs Resales

New-build properties outperformed resales, with average prices reaching £392,000, up 4.8% annually and 2.6% monthly. Existing resold properties averaged £287,000, with both annual and monthly falls recorded.

These trends are relevant for letting agents and inventory clerks monitoring regional market shifts, buyer activity, and property type performance across the UK.