The Halifax House Price Index reported that UK house prices rose by 0.5% year-on-year in May 2026, undershooting the expected 1.0% increase and only slightly above the 0.4% gain recorded in April. The average UK house price was £298,806. On a monthly basis, prices declined by 0.1%, matching April’s fall and defying forecasts for a 0.1% rise.
Amanda Bryden, Head of Mortgages at Halifax, said that uncertainty surrounding developments in the Middle East and higher inflation expectations have kept borrowing costs elevated despite recent cuts to mortgage rates, weighing on both affordability and demand. Even so, housing market activity has remained relatively robust, with transaction volumes holding broadly steady.
Regionally, Northern Ireland saw the strongest annual house price growth at 7.8%, followed by Scotland (3.8%), the North East (3.1%), and the North West (3.0%). In contrast, prices declined in the South East (-2.1%) and London (-1.5%).
