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 growth persists despite inflation and rising rates
Average UK house prices increased by 1.4% to £273,000 in the 12 months to July 2026, according to the latest Office for National Statistics (ONS) data. The annual growth rate is down slightly from the 1.5% recorded in June.
Regional picture
The average house price in England was £293,000 in July 2026, up 1.1% year on year, with annual house price inflation in England slowing for the third consecutive month. This slowdown has been attributed to a sharp slowing in the annual rate for the South West, with London and the West Midlands also contributing.
London saw the lowest annual percentage change, with prices decreasing by 3.3% to £550,000 in the 12 months to July 2026, down from an annual fall of 3.1% in June. This marked the 11th consecutive month of annual price falls in the capital and the lowest annual rate for London since January 2024.
The North East recorded the highest house price inflation of any English region, growing 4.9% to £167,000, up from 4% in the 12 months to June 2026. Elsewhere, the average house price in Wales rose 2.6% annually to £215,000, while Scotland saw growth of 2.3% to £196,000.
Industry reaction
Commenting on the figures, industry figures noted that slower house price growth may be welcome for prospective buyers but does not automatically make buying more affordable, with deposits, mortgage payments and wider household costs remaining significant considerations, particularly for first-time buyers.
Others observed that the market is struggling for momentum through the traditionally quieter summer months, but that the headwinds of stubborn inflation and increasing mortgage rates have so far failed to fully snuff out growth. With inflation rising and the economy slowing, some pointed to a lack of confidence among buyers and sellers, while noting that overall growth continues and that value reductions in some parts of the country are mainly due to a much higher starting point.
What it means for letting agents and inventory clerks
For letting agents and inventory clerks, the ONS data points to a market of regional divergence: continued growth in the North East, Wales and Scotland, alongside a prolonged period of price decline in London. Regional variation in property values can affect rental valuations, portfolio decisions and client expectations, so up-to-date awareness of local market conditions matters when preparing inventories and advising landlords.
Source: Mortgage Solutions