The average UK property was valued at £272,000 in June, with prices increasing by just 0.1% between May and June. The ONS said annual growth slowed for the second consecutive month as price increases this summer have been weaker than during the same period last year.
In England, the average house price increased by 1.8% annually to £293,000, while Wales recorded growth of 1.8% to £213,000. Prices in Scotland rose by 2.3% to an average of £195,000.
Northern Ireland recorded stronger growth, with the average price reaching £202,000 in Q2, up 9.2% compared with the same period in 2025.
The figures also showed an acceleration in rental growth. Average UK private rents increased by 3.7% in the 12 months to July, up from 3.3% in June, taking the average monthly rent to £1,393.
Average rents reached £1,451 in England following annual growth of 3.8%, while rents increased by 4.5% to £843 in Wales and by 1.7% to £1,016 in Scotland.
Within England, the North East recorded the strongest annual rental growth at 6.3%, while the South East had the lowest at 2.9%.
Gareth Lewis, deputy CEO of MT Finance, said: "While there is annual growth in average property prices, the pace of this growth is slowing. More worrying perhaps is that the volume of purchase transactions has also slowed, as buyers delay decisions to move in the belief that prices will soften further.
"Interest rates at a higher level than was forecast at the start of the year are not helping. Some properties are shifting quickly because they are highly desirable, and there are still those who need to move for schools or jobs etc.
"Ultimately, there is a lack of leadership with the government’s inability to make strategic changes to benefit the market and in turn consumers. They fail to realise how important a well-functioning property market is not only to buyers and sellers but the wider economy. Some strategic thinking to get the market moving is desperately required."
Chris Storey, chief commercial officer at Atom bank, added: "Today’s ONS figures paint a picture of a cautious housing market, with annual house price growth continuing to slow.
"Would-be buyers have seen the impact of global events on mortgage rates, and their own monthly outgoings, and so have been more wary about pursuing transactions. Rightmove has just reported the biggest drop in August asking prices since 2018, while the number of homes available has hit a 12-year high. Combined with research from Propertymark noting that homes are taking longer to sell, it seems clear that activity is being driven by only the most motivated parties.
"The path ahead remains uncertain, with news today of inflation accelerating sharply in July. The Bank of England held base rate but has said it is ready to raise interest rates if the Iran conflict drags on, which will have an impact on buyer confidence. And we are still waiting to see precisely what Andy Burnham’s vision for the housing market will be. Until that picture becomes a bit clearer, the market will continue to be dominated by those who need to move, rather than those testing the waters."
