The typical British home rose in value by £5,000 in the year to June, official figures show.

The average house price went up by 2 per cent year-on-year, according to the latest HM Land Registry data. 

This was a decline compared to April and May, when prices had risen by 4 per cent and 3 per cent respectively.  

House price growth has been weaker in early summer 2026 than it was in the same period last year. 

Average prices rose by just 0.1 per cent between May and June this year, compared with a 1 per cent increase in the same period a year ago.

However, the property industry is hopeful that the market will rebound in September.  

Richard Donnell, executive director of research at Zoopla, said: 'Housing sales market activity has been hit hard over the summer by higher mortgage rates which have hit buying power and slowed price inflation. 

'However people can't put decisions on hold indefinitely and we expect a rebound in activity in September and October with some early signs of a return of buyers.'

Prices rise more in North of England

Prices in the North West and North East of England are up 4.7 and 4.3 per cent respectively.

Meanwhile, in London, the average property has fallen in value by 2.5 per cent in the last year.

In the City of Westminster local authority in central London prices have dropped 25.4 per cent in the year to June from £1.145m to £854,000 - a £291,000 fall in value in just 12 months.

However, the typical home in the capital rose in value by £9,000 in the past month leading some to suggest the capital's property market is staging a turnaround.

Jonathan Hopper, chief executive of buying agent Garrington Property Finders, said: 'Property values in the capital have fallen on an annual basis for 10 months in a row, but there are increasing signs that prices have finally bottomed out.

'While one month of Land Registry data does not a summer make, we may have reached a tipping point as tactical buyers who’d been waiting for the right moment to strike return to the London market.'

Hopper is also more optimistic about the market across the South West and East of England where prices remain below where they were four years ago.

'With markets in the capital and much of southern England still awash with supply, buyers are spoilt for choice and able to negotiate hard on price,' he said. 

'However as the imbalance between demand and supply begins to equalise, buyers in the south will start to experience something they’ve largely been spared for much of this year - competition.'