Average annual house price growth slowed to 2% in June from 3% the previous month, according to Office for National Statistics (ONS) figures.
Across the UK, the average house price increased by 2.0% to reach £272,000 in the 12 months to June, slowing from 3.0% in the 12 months to May.
ONS head of housing market indices Aimee North said: ”Annual UK house price inflation slowed significantly in June because price growth was weaker this summer than it was last year following stamp duty changes in England and Northern Ireland.”
In contrast to early summer 2026, strong price growth was recorded in May and June 2025 as average price levels rebounded after a sharp fall in April 2025, the report said.
Average prices increased in June to reach £293,000 (1.8% annual growth) in England, £213,000 (1.8%) in Wales, and £195,000 (2.3%) in Scotland.
In Northern Ireland, the average was £202,000 in the second quarter of 2026, jumping by 9.2% annually.
This was the highest annual inflation rate for Northern Ireland since the fourth quarter of 2022.
In England, the North West had the highest house price inflation, at 4.7% in the 12 months to June, while the figure was lowest in London at 2.5%, although the rate of fall slowed from 3.1% in the 12 months to May.
It is the 10th month in a row of annual falls in the capital, mainly caused by decreases in inner London, the report said.
The figures were released as the ONS said Consumer Prices Index (CPI) inflation accelerated to 2.9% in July, up from a 15-month low of 2.6% in June.
David Hollingworth, associate director at L&C Mortgages, said: “The increase is largely in line with market expectations, which is important from a mortgage borrowers’ perspective.
“Financial markets are already factoring in the threat of interest rates having to climb to combat higher inflation.”
He added: “There remains a volatile backdrop and it’s impossible to rule out more yo-yoing in mortgage rates at this stage.
“The good news is that, because today’s increase in inflation was widely anticipated, it’s less likely for there to be big repercussions in markets that would put more pressure on lenders funding costs in the short term.”
The ONS also said the average monthly private rent in the UK was £1,393 in July – around £50 (3.7%) higher than a year earlier.
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