UK house prices recorded their strongest annual growth in more than a year during April, with values rising by 3.8% compared with the same month in 2025, according to the latest figures from the Office for National Statistics.
The increase follows zero annual growth recorded in March and represents the fastest rate of house price inflation since March 2025, immediately before changes to Stamp Duty thresholds came into effect. The average UK property is now valued at £270,000.
Growth was strongest in the North East, where prices increased by 9.9% year-on-year, while London remained the weakest-performing region. Property values in the capital fell by 2.1% over the year to April, marking the ninth consecutive month of annual decline.
Across the UK nations, average prices rose to £291,000 in England, £212,000 in Wales and £192,000 in Scotland. In Northern Ireland, the average house price reached £198,000 in the first quarter of 2026, up 7.4% annually.
The ONS said the latest figures were influenced by comparisons with a period of market disruption surrounding last year’s stamp duty changes, which contributed to weaker price growth in April 2025. On a monthly basis, UK house prices rose by 0.7% between March and April this year.
Richard Donnell, executive director of research at Zoopla, said: “The jump in house price inflation in May is artificial and linked to the ending of last year’s stamp duty holiday.
“The sales market is weakening as we enter the summer with buyer demand down 14% on this time last year, yet there are still more homes for sale.”
He added: “It’s a buyers’ market and the North-South divide in prices and market activity remains.
“People want to move but serious sellers need to price their home carefully.”
Average UK monthly private rents increased by 3.3% in the year to May, compared with 3.5% the 12 months to April, the ONS said, marking the smallest rise since March 2022.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, commented: “Often we have found on the ground that lettings activity and rents are in inverse proportion to sales. This time around though, while sales are rather subdued, lettings are also still sluggish.
“A significant proportion of landlords are selling due to concerns about the Renters’ Rights Act which is still underpinning rents but worries about the cost of living have kept a lid on any further increases.
“Looking forward we don’t expect to see much change but if inflation continues to level, then a modest increase in rents is probably unstoppable.”
The ONS also said on Wednesday that Consumer Prices Index (CPI) inflation remained at 2.8% in May, the same rate as in April.
It was lower than expected by economists, who had predicted an uptick in inflation to 3%.
David Hollingworth, associate director at L&C Mortgages said: “It was expected that there would be an increase in the rate of inflation in May, after the larger than anticipated fall in April’s figures, so to hold steady will come as a nice surprise.
“That should be a boost to mortgage borrowers who would have no doubt been accepting of a small rise in the rate of inflation but fearing a bigger jump.”
Read the orginal article: https://propertyindustryeye.com/property-market-weakening-ahead-of-summer/
