Average house prices in England increased by 2.3% in the year to May 2026, down from 4.0% in April, as the impact of last year's Stamp Duty Land Tax changes continued to feed through the market, according to the latest UK House Price Index.
The average property in England was valued at £292,095 in May, an increase of £6,569 over the previous year. On a monthly basis, prices rose by just 0.1%, while seasonally adjusted prices were unchanged between April and May.
Regional performance remained mixed. The North East recorded the strongest annual growth, with average prices rising 5.9%, while London was the weakest-performing region, with prices falling 3.7% over the year. The report said the slowdown in annual house price growth reflected a base effect following the Stamp Duty Land Tax changes introduced in England and Northern Ireland on 1 April 2025.
Across England, semi-detached homes recorded the strongest growth, increasing by 4.1% to an average value of £290,791. Detached properties rose 2.5% to £473,921, while terraced homes increased 3.2% to £244,279. Flats and maisonettes were the only property type to record an annual decline, falling 2.2% to an average of £217,421.
At a local authority level, North East Derbyshire recorded the highest annual increase in England, with prices rising 10.6%, followed by Preston (10.7%), Redcar and Cleveland (8.7%), St Helens (8.8%) and Hyndburn (8.6%). In contrast, Westminster saw prices fall 22.8%, while the City of London recorded a 28.1% decline, although the report notes that areas with very low transaction volumes can experience significant volatility. Kensington and Chelsea remained England's most expensive housing market, with an average property price of £1.26 million, while Burnley was the least expensive at around £130,000.
The report also highlighted a sharp fall in sales volumes. Provisional estimates showed 41,354 residential transactions in England during March 2026, compared with 120,728 a year earlier, although Land Registry said recent months' figures remain incomplete and will be revised as further transactions are registered.
