House prices see ‘cautious’ rise of 2% annually to £272,000 – ONS
June’s UK house price reading showed a rise of 0.1% since May, representing a 2% overall rise year-on-year.
England experienced house price growth of 0.2% from May to June. The annual price increase of 1.8% took the average property value to £293,000.
With an annual increase of 4.7%, the North West topped the table and had the third-highest monthly growth of 0.4% to £220,000.
The North East continues to see strengthening prices, as it had a monthly increase of 1% and the second-largest annual increase of 4.7% to £166,000.
London and the West Midlands also enjoyed monthly increases of 1%. However, London still saw an annual decrease of 2.5% to £554,000, while the West Midlands saw an annual rise of 2.6% to £251,000.
Commenting on the contraction of London’s house prices, Jason Tebb, president of OnTheMarket, said: “In the capital, this was the 10th consecutive fall due to the increase in stock available and buyers finding it harder to raise the necessary finance to afford properties [that] can be considerably more expensive than in other areas.”
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Semi-detached properties flourish in England
Semi-detached properties retained the strongest year-on-year growth, with average prices rising by 3.2% to £291,000. Terraced houses recorded the second-highest annual increase, up 2.8% to £246,000.
In contrast, the average price of flats continued to decline, falling by 2.3% year-on-year to £219,000.
In April 2026, the average price of a new-build home was £494,000, down 4.6% compared with April 2025 and 0.2% lower than in March 2026. By contrast, the average price of an existing resold property was £554,000, representing a 2.2% annual decline but a 1.3% increase from the previous month.
All types of buyers on the rise
In England, all buyer and funding categories – cash, mortgage, first-time and former owner-occupier – recorded identical monthly growth of 0.2% between May and June.
Homes bought with a mortgage recorded the strongest annual price growth at 1.9%, reaching an average value of £299,000. First-time buyers and former owner-occupiers both saw annual growth of 1.8%, with average purchase prices of £245,000 and £357,000 respectively, while cash purchases rose by 1.4% to an average of £279,000.
Chris Storey, chief commercial officer at Atom Bank, said: “Today’s ONS figures paint a picture of a cautious housing market, with annual house price growth continuing to slow.
“Would-be buyers have seen the impact of global events on mortgage rates, and their own monthly outgoings, and so have been more wary about pursuing transactions… activity is being driven by only the most motivated parties.”
Mark Harris, CEO of SPF Private Clients, said: “The higher cost of living is squeezing household affordability, which means that those who need to move are being careful when it comes to what they are prepared to spend.”
Ian Futcher, financial planner at Quilter, commented: “Looking ahead, mortgage rates will continue to be the key driver of the housing market. If lender competition continues and borrowing costs can gradually ease, activity should remain supported, but a swing the other way could see the market stall once again.”
