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 2.7% in May 2026, Land Registry Reports

UK house price growth decelerated in May 2026, with annual growth dropping to 2.7%, according to the latest Land Registry House Price Index. The average property price in Britain now stands at £270,080, with monthly growth slowing to 0.3% from 0.5% in April.

Regional Variations

The Land Registry data shows significant regional differences in house price growth. England saw average house prices rise by 2.3% annually, while Wales recorded 4.2% growth and Scotland 4.4%. Northern Ireland was the fastest growing market, with prices up 7.4% annually in the first quarter of 2026. Within England, the North East experienced the strongest annual growth at 5.9% in the 12 months to May 2026. In contrast, London recorded the weakest performance, with prices down 3.7% annually.

Market Activity and Conditions

Market activity has declined, with Zoopla reporting buyer enquiries down 20% year-on-year and sales agreed down 7%. Factors cited as impacting the market include political change, the World Cup, summer weather, and elevated mortgage rates. Affordability concerns remain, particularly for first-time buyers, and attention is turning to the upcoming Bank of England base rate decision and Ofgem’s energy price cap announcement.

Industry observers note that increased stock and continued affordability pressures are likely to keep prices in check. The gap between buyer and seller expectations is narrowing, with properties increasingly priced appropriately from the outset. The market is described as becoming more balanced, with buyers having greater choice and sellers recognising the importance of realistic pricing. Transactions are being driven by value and quality rather than urgency, and ambitious pricing strategies are less likely to succeed in the current environment.

Buyer bargaining power has strengthened further due to fewer and slower transactions. However, encouraging inflation figures may help revive confidence. Major improvements in market activity are not expected until after the summer holiday period.

The Land Registry data covers both mortgage-dependent purchases and the approximately 40% of transactions completed with cash.