UK house-price inflation slows further in July

(Sharecast News) - UK house-price inflation slowed for a third consecutive month in July, with falling prices in London and weakness in the South West weighing on the national rate, official data showed on Wednesday. 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.