UK house price growth slowed for a third consecutive month in July, with average prices rising 1.4% over the year to £273,000, according to provisional figures from the Office for National Statistics (ONS).

The annual rate was down from 1.5% in the 12 months to June, with a sharp slowdown in the South West of England contributing to the weaker growth. London and the West Midlands also added to the slowdown.

The figures show a mixed picture across the UK. Average prices in England rose 1.1% over the year to £293,000, while prices in Wales increased 2.6% to £215,000 and Scotland recorded annual growth of 2.3%, taking the average price to £196,000.

In England, the North East recorded the strongest annual house price growth, at 4.9% in the 12 months to July, up from 4% in June.

At the other end of the scale, London remained the weakest-performing English region. House prices in the capital fell 3.3% over the year, compared with a 3.1% annual decline in June.

July marked the eleventh consecutive month of annual house price falls in London. Inner London was particularly affected, while the annual rate was the lowest recorded for the capital since January 2024.

The average London house price stood at £569,000 in July, £19,000 below its recent peak in July 2025.

Northern Ireland recorded a markedly different trend. Its average house price reached £202,000 in the second quarter of 2026, up 9.2% — or £17,000 — from the same quarter a year earlier.

Northern Ireland’s annual rate rose partly because prices increased 2.1% between the first and second quarters of 2026, compared with a 0.6% increase over the same period in 2025. The lower price growth in the second quarter of 2025 coincided with changes to Stamp Duty Land Tax in Northern Ireland from 1 April that year.

The 9.2% annual increase was Northern Ireland’s highest since the fourth quarter of 2022, when annual growth reached 10.1%.

The latest UK House Price Index figures are provisional. The first estimate for July is based on sales volumes representing around 50% of all sales in Great Britain during the month. Transaction volumes for earlier periods and for new-build properties remain lower than historical levels.

Sales activity across prime London picked up this year, with buyers increasingly choosing to negotiate on price rather than abandon deals, according to data from Knight Frank.