The UK housing market recorded another modest increase in July 2026, although the national picture continued to mask significant differences between regions. Average property prices
rose by 0.7% compared with June, while annual growth stood at 1.4%, according to the latest UK House Price Index published by HM Land Registry on 16 September. The average UK property was valued at approximately £273,000.
The latest figures point to a housing market that is moving upward overall but remains uneven. Several regions recorded solid annual gains, while London continued to experience declining prices.
England sees moderate annual growth
In England, average house prices increased by 0.7% between June and July. Over the year, prices rose by 1.1%, bringing the average property value to £293,000.
The strongest monthly performance came from the East Midlands, where prices climbed 1.7%. At the other end of the scale, the South West recorded a 0.2% monthly decline.
Regional differences were even more pronounced over the longer term. The North East registered the strongest annual increase, with prices rising 4.9%. The North West followed with growth of 4.4%, while Yorkshire and the Humber recorded a 3% increase.
London remained the weakest-performing region, with prices falling 3.3% over the year. The South West also recorded an annual decline, although considerably smaller, at 0.2%.
Average prices varied substantially across England. London remained by far the most expensive regional market, with an average property price of £550,000. The South East followed at £381,000, while the North East had the lowest average at £167,000.
Property type continues to make a difference
The English market also showed contrasting trends depending on the type of property being sold.
Detached homes averaged £475,000 in July, up 1.4% from a year earlier. Semi-detached properties rose 2.7% to £292,000, while terraced homes increased 2.3% to £247,000.
Flats and maisonettes moved in the opposite direction. Their average price fell 3.5%, from £225,000 in July 2025 to £217,000 a year later. Across all property types, the English average increased from £290,000 to £293,000.
There were also differences according to how properties were purchased. Mortgage-funded purchases had an average price of £299,000 and recorded annual growth of 2.4%. Cash purchases averaged £279,000 and rose 2.1% over the year. First-time buyers paid an average of £246,000, while former owner-occupiers paid £357,000.
New-build properties continued to show stronger annual price growth than existing homes. The latest published figures show a 7.7% annual increase for new builds, compared with 2.2% for existing resold properties.
London remains the main exception
London's housing market continued to diverge from much of the rest of England.
Average prices in the capital fell 0.1% between June and July and were 3.3% lower than a year earlier. The average London property was valued at £550,000 in July 2026, compared with £569,000 in July 2025.
The decline was particularly pronounced among flats and maisonettes. Their average price dropped 6.6% year-on-year to £424,000.
Detached properties, by contrast, increased 1.2% to £1.168 million, while semi-detached homes rose 1.1% to £724,000. Terraced properties were broadly stable, edging down 0.2% to £642,000.
London's annual decline was also visible across different categories of buyers. First-time buyers saw average prices fall 4%, while cash purchases declined 4.5%. Mortgage-funded purchases were down 2.9%, and former owner-occupiers recorded a 2.3% annual decline.
Wales records stronger growth
Wales produced a considerably firmer result. Average house prices increased 1% between June and July and were 2.6% higher than a year earlier. The average property price reached £215,000.
All major property categories remained close to positive annual growth. Detached homes rose 2.5% to £336,000, semi-detached properties increased 3.4% to £215,000, and terraced homes climbed 2.7% to £172,000. Flats and maisonettes were broadly unchanged, edging down 0.3% to £129,000.
New-build properties showed particularly strong annual growth, with prices up 9.9% in the latest published figures. Existing properties increased 3.9%.
Transaction activity remains subdued
Despite the rise in prices, the number of completed residential transactions was slightly lower than a year earlier.
Official transaction statistics estimated around 97,000 residential property transactions worth at least £40,000 in July 2026 on a seasonally adjusted basis. That represented a 1.1% decline compared with July 2025. Transactions also fell 1.7% between June and July.
Repossession sales remained relatively limited in England, with 109 recorded in March 2026. London accounted for the largest number, at 26, while the East of England recorded just one.
A market of modest gains and pronounced regional contrasts
The July figures suggest that the UK housing market continued to make gradual progress, but the recovery was far from uniform. The North East and North West recorded some of the strongest annual increases, while Wales also posted relatively robust growth.
London, meanwhile, remained an important outlier, with prices declining over the year and flats experiencing a particularly significant fall.
The data should also be interpreted with caution because the UK House Price Index is based on completed transactions. A typical home purchase takes around six to eight weeks to reach completion, meaning that the July figures reflect market activity that began earlier. HM Land Registry therefore cautions against placing too much emphasis on movements in any single month.
