House prices across England and Wales increased by 2.4% in the year to May 2026, according to the latest e.surv Acadata House Price Index, taking the average property value to £365,600.

The report suggests the market continues to demonstrate resilience despite affordability pressures and elevated borrowing costs, although regional performance remains mixed. More affordable northern regions continued to outperform, while London and parts of the South East saw much weaker growth.

On a monthly basis, average prices rose by 0.3% between April and May, equivalent to approximately £1,100. However, annual growth remains significantly below the levels seen during the post-pandemic housing boom.

The data also indicates that transaction levels have remained relatively stable, supported by easing mortgage rates and continued activity from cash buyers and equity-rich movers. Increased levels of housing stock are also beginning to rebalance the market, giving buyers greater negotiating power.

The report states: “The housing market continues to demonstrate resilience despite ongoing affordability constraints, although pricing power remains heavily influenced by regional affordability differences.”

For investors, the figures continue to highlight the importance of regional targeting, with affordability, rental demand and yield potential increasingly driving market performance.