The average UK house price increased sharply in April, with a 3.8% annual rise, according to the Office for National Statistics (ONS). This increase, influenced by stamp duty changes last year, brought the typical property value to £270,000.
Regional Variations
In March, the average UK house price was flat with 0.0% annual change. The 3.8% rise in April was the highest annual inflation rate since March 2025, just before stamp duty changes took effect on April 1, 2025.
Average house prices in the 12 months to April 2026 increased to £291,000 (3.9%) in England, £212,000 (3.5%) in Wales, and £192,000 (2.8%) in Scotland. In Northern Ireland, the average price was £198,000 in the first quarter of 2026, marking a 7.4% annual increase.
Within England, the North East had the highest annual house price inflation at 9.9% in April. The ONS attributed this sharp rise to a base effect from large monthly price falls a year ago, coinciding with stamp duty changes.
Annual house price inflation was weakest in London, where the average price fell by 2.1% in the 12 months to April, unchanged from March. This marks the ninth consecutive month of annual price falls in London.
Expert Analysis
Aimee North, ONS head of housing market indices, said: Average UK house price annual inflation rose sharply in April. This months rise was partly due to figures being compared with an unusually large fall in house prices a year earlier, following stamp duty changes across much of the country in April 2025.
Stamp duty applies in England and Northern Ireland, and last year's changes made discounts less generous, bunching up sales. The ONS noted a modest monthly rise of 0.7% between March and April 2026, compared to a large monthly fall of minus 2.9% in the same period a year ago.
Richard Donnell, executive director of research at Zoopla, commented: 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 summer, with buyer demand down 14% on this time last year, yet more homes for sale. It's a buyers' market, and the North-South divide in prices and activity remains. People want to move, but serious sellers need to price their home carefully.
Inflation and Mortgage Rates
The ONS also reported that Consumer Prices Index (CPI) inflation remained at 2.8% in May, the same as in April, lower than the expected 3%. David Hollingworth, associate director at L&C Mortgages, said: It was expected that inflation would increase in May after the larger-than-anticipated fall in April, so holding steady is a nice surprise. That should boost mortgage borrowers who feared a bigger jump.
Ian Futcher, a financial planner at Quilter, added: Today's inflation figures were unchanged, with CPI at 2.8%, while the prospect of a US-Iran peace deal has reduced the immediate risk of another energy-driven inflation shock. That should make it less likely the Bank of England feels forced to raise rates at this week's meeting. Mortgage rates are unlikely to fall sharply overnight, but the direction should improve if geopolitical pressure on energy prices eases and inflation remains contained.
Rental Market
The average private rent in the UK was £1,383 per month in May 2026, a £44 (3.3%) annual increase. Jeremy Leaf, a north London estate agent, said: Often, lettings activity and rents are inversely proportional to sales. This time, while sales are subdued, lettings are also sluggish. If inflation continues to level, a modest increase in rents is probably unstoppable.
Tom Bill, head of UK residential research at Knight Frank, noted: Rental value growth remains stubborn.
