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

UK house price growth slows to 1.4% as London declines extend

UK house price growth decelerated for the third consecutive month in July, according to provisional Office for National Statistics figures. Average prices rose 1.4% in the year to July, down from 1.5% in June. The average property is valued at £273,000.

Regional picture

Average prices in England rose 1.1% to £293,000, while Wales recorded stronger annual growth of 2.6% to an average of £215,000. Prices in Scotland rose 2.3% to an average of £196,000.

Northern Ireland had 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, an increase of about £17,000. It is the region's strongest annual growth since the final quarter of 2022. Prices rose 2.1% between the first and second quarters, compared with 0.6% over the same period in 2025.

London extends its decline

London remained the weakest-performing English region, with average prices down 3.3% over the year to July, compared with a 3.1% annual decline in June. The average London property was valued at £569,000 — £19,000 below the July 2025 peak. Inner London's annual decline was the capital's largest since January 2024. The South West and West Midlands also contributed to the slowdown in English house price growth.

North East leads England

England's strongest annual growth was in the North East, where average prices rose 4.9% in the 12 months to July, from 4% in June.

Pricing strategy in focus

Nick Leeming, chairman of Jackson-Stops, said the figures showed the importance of accurate initial pricing. "Today's figures point to a market where realistic pricing increasingly determines which homes sell and those that stall," he stated. "Buyers are still there, but they are informed, selective and have more choice. That means sellers cannot rely on testing the market at an ambitious price and expecting buyers to follow."

Property listings in England surged 16% in early September, which could increase buyer choice further.

What happens next

Nathan Emerson, CEO at Propertymark, said attention would turn to the Bank of England and the forthcoming Budget. "There are still challenges yet to overcome, and tomorrow's base rate decision from the Bank of England will likely set the tone over the coming months regarding overall market confidence," he commented.

The ONS cautioned that the figures remain provisional and could be revised. The initial July estimate covers sales volumes representing about half of transactions completed across Great Britain during the month, and transaction volumes for recent periods and new-build properties remain below historical levels.