Loading Guild Resources
Loading Guild Resources
Loading Guild Resources
The price of an average UK home rose by 3.9 per cent to £269,000 in the year to May, up from 3.6 per cent in the year to April 2025.
Average house prices in England increased by 3.4 per cent to £290,000, and by 5.1 per cent to £210,000 in Wales.
However, UK annual house price inflation slowed in April, mainly due to a fall in the price index between March and April, which coincided with the Stamp Duty Land Tax (SDLT) changes on 1 April.
The latest house price data from the Office for National Statistics (ONS) showed the annual rise for England was slightly higher than the 3.1 per cent recorded in the 12 months to April 2025. Prices in Wales were up £11,000, or 4.5 per cent, from those posted a year earlier.
The North East had the highest house price inflation in the 12 months to May, at 6.3 per cent. This was a slight increase from 6.2 per cent in the 12 months to April.
Annual house price inflation was lowest in the South West, at 1.9 per cent in the year to May. This was up from 0.7 per cent in the 12 months to April. London’s house price growth slowed in May to 2.2 per cent, down from 4.6 per cent in April.
While prices are still rising quickly in the north, homeowners in London and the south are seeing a rapid slowdown.
This could be the start of a ripple effect, where price changes begin in London and then spread to the Midlands and the North.
| Region | Annual change |
|---|---|
| North East | 6.3% |
| Yorkshire and The Humber | 5.1% |
| East Midlands | 5.0% |
| East of England | 4.2% |
| West Midlands Region | 3.5% |
| North West | 3.3% |
| London | 2.2% |
| South East | 2.1% |
| South West | 1.9% |
| Source: Office for National Statistics | |
Estate agents reporting through the trade body The Royal Institution of Chartered Surveyors (RICS) say that momentum in the sales market is 'relatively soft' and that house prices remain largely flat.
Meanwhile, property portal Rightmove published data showing asking prices dropped by 1.2 per cent to an average of £373,709 — the largest fall in 20 years.
"The continued decade-high level of housing supply for sale is limiting price growth, compounded by the start of the traditional summer holiday season. Summer sellers typically need to work harder compared to the spring to capture distracted buyers' attention," said the firm's Colleen Babcock.
"In some previous years, such a price drop might have been an indicator of a slower market. However, tempting pricing from new sellers is helping to improve buyer affordability, enticing new buyers into enquiring, and helping year-on-year growth in the numbers of sales being agreed."