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.

UK House Price Inflation Slows to 1.3% Amid Summer Market Cooldown

UK house price inflation has slowed to 1.3%, down from 1.7% a year ago, according to Zoopla’s latest House Price Index. The report attributes the sharper-than-usual summer slowdown to elevated mortgage rates and political uncertainty.

The average UK home was valued at £272,800, an increase of £3,400 over the past year. Regional differences were notable, with the North West leading on price growth, rising from 3.2% to 3.5% and an average home value of £210,000. The North East and Scotland both recorded annual growth of 3.1%, with average house prices at £151,500 and £175,800 respectively.

In the West Midlands, house price growth accelerated to 2.1%, up from 1.8% last year, with the average property now worth £238,500. The East Midlands saw growth slow to 1.2% from 1.7%, but average prices still increased by £2,830 to £233,900.

London experienced a shift from 0.7% annual growth last year to a 0.6% decline in June 2026, with the average home valued at £527,100 after a decrease of £3,270. The South East also moved from 0.7% growth to a 0.4% decline, with an average property value of £384,300. The South West saw growth slow from 0.6% to flat year-on-year, with an average house price of £310,800. The East of England slowed from 1.3% to 0.4%, with an average price of £338,800.

Northern Ireland recorded the strongest annual growth at 5.1%, though this was down from 7.5% a year ago, with the average property now worth £197,200.

Zoopla identified Warrington, Hull, and Dundee as housing market hotspots, with sales agreed remaining positive or increasing and house price growth outperforming local trends. In contrast, Bath, Oxford, and Harrow were highlighted as cold spots, where sales activity weakened and house price growth deteriorated.

Liverpool saw the largest annual change in house price by 4.2% to £171,000. Newcastle followed with a 3.2% increase to £164,700, and Manchester rose by 2.7% to £239,900. Cambridge reported a decrease of 1.2%, with the average house price at £463,700. Bournemouth was the only region to report a consecutive year of decline, from minus 0.5% to minus 2.1%, with the average price at £315,600.

These trends may impact letting agents and inventory clerks, particularly in regions experiencing either strong growth or notable declines, as market activity and property values shift across the UK.