UK house-price inflation slows further in July.

Source: Sharecast

According to the Office for National Statistics, average UK house prices were 1.4% higher than last year at £273,000 in July, easing from a revised 1.5% increase in June. That represented the lowest rate of house price inflation since March, when prices were unchanged year on year.

On a monthly basis, however, average prices rose 0.7% between June and July, compared with a 0.8% increase over the same period a year earlier.

The ONS said the slowdown in annual inflation was driven primarily by a sharp weakening in the South West, with London and the West Midlands also contributing.

Across the UK, average prices rose 1.1% year-on-year in England to £293,000, while Wales saw growth of 2.6% to £215,000 and Scotland 2.3% to £196,000. Northern Ireland, where the latest figures relate to the second quarter, recorded a 9.2% annual increase to £202,000.

Among English regions, the North East recorded the strongest annual growth at 4.9%, up from 4.0% in June. London remained the weakest region, with prices falling 3.3%, compared with a 3.1% decline previously, marking an 11th consecutive annual fall. The average London home was valued at £569,000, £19,000 below its July 2025 peak.

Separately, average UK private rents rose 3.8% year-on-year to £1,400 in August, accelerating from the 3.7% increase in July and the highest rate since December 2025.