UK house prices rose by 2.7% in the year to May 2026, according to the latest official data from HM Land Registry, published yesterday. The average property across the country is now worth £271,000. But the headline figure masks a sharp deceleration from April’s 3.9% annual growth, and a widening gap between the regions that are gaining ground and those falling behind.
On a monthly basis, prices edged up just 0.3% between April and May, a fraction of the 1.5% monthly gain recorded over the same period last year. The Land Registry attributes the cooling partly to a base effect: the aftermath of April 2025’s Stamp Duty Land Tax threshold changes, which pulled transactions forward and inflated last year’s figures.
Transactions tell a more positive story. An estimated 98,000 residential sales completed in May 2026, up 16.6% on the same month last year. Buyers haven’t disappeared. They’re just paying less of a premium than they were twelve months ago.
The regional picture is striking. The North East recorded the strongest annual price growth in England at 5.9%, with the North West close behind at 5.8%. Yorkshire and the Humber posted a remarkable 4.3% monthly increase alongside 4.3% annual growth.
London, by contrast, is in retreat. Prices fell 3.7% over the year and dropped a further 1.2% in May alone, bringing the average to £545,000. The City of London saw values plummet 28.1%, while Westminster fell 22.8%. These are extreme figures, partly driven by low transaction volumes in those boroughs, but the direction of travel across the capital is unmistakable.
The South East managed a modest 1.2% annual gain. The South West recorded 1.7%. Neither region is collapsing, but neither is keeping pace with the north.
The East of England as a whole averaged £338,000, with annual growth of 2.3% and a monthly gain of 0.3%. That places the region broadly in line with the national picture. Dig into the local authority data, though, and the variation is considerable.
Norwich recorded 5.8% annual growth, with average prices reaching £237,629. That’s comfortably above the regional average and suggests sustained demand for the city’s housing stock, particularly among first-time buyers drawn by relative affordability compared to southern alternatives.
Broadland was the standout performer across the county, posting 7.6% annual growth to reach £314,426. The appeal of villages and market towns within commuting distance of Norwich continues to drive demand here.
King’s Lynn and West Norfolk rose 2.8% to £262,525. Breckland, covering Attleborough, Dereham and Swaffham, gained 3.0% to £275,544. South Norfolk added 1.7% to reach £314,302.
Not everywhere shared the growth. North Norfolk dipped 0.7% to £293,640, and Great Yarmouth slipped 0.5% to £205,316. These modest declines aren’t cause for alarm, but they reflect the market’s sensitivity to location, property type and local economic conditions.
Across the border in Suffolk, Mid Suffolk led with 4.2% growth to £318,641. West Suffolk rose 2.3%, East Suffolk gained 2.1%, and Babergh added 1.5%. Ipswich, by contrast, fell 1.8% to £219,718, a pattern consistent with the broader weakness in urban flat-heavy markets.
One of the clearest trends in the data is the divergence between property types. Semi-detached houses were the strongest performers in England, rising 4.1% annually to £291,000. Detached homes gained 2.5% to £474,000. Terraced properties added 3.2%.
Flats and maisonettes fell 2.2% to £217,000. It’s the only property type in negative territory nationally, and it aligns with a pattern The Ivybridge Collection has been tracking across Norfolk: lenders are increasingly cautious about flats with high service charges, and buyers with the means to choose are favouring houses with gardens and space. The property market reports covering 324 locations across Norfolk and Suffolk consistently show this preference reflected in local price movements.
There’s a notable split between new builds and existing properties too. New build homes in England rose 4.8% annually to an average of £392,000. Existing resold properties fell 0.7% to £287,000.
The premium for new builds isn’t new, but the gap is widening. Energy efficiency, lower running costs and the appeal of modern specifications are all factors. For sellers of older properties, the message is clear: presentation and pricing matter more than ever when competing against new stock.
The slowing annual rate shouldn’t be mistaken for a market turning sour. Transaction volumes are up significantly, suggesting genuine buyer activity rather than the stagnation that characterised parts of 2023 and early 2024. The base effect from last year’s stamp duty changes will continue to distort annual comparisons for several months yet.
For Norfolk and Suffolk, the fundamentals remain sound. Norwich and Broadland are growing at rates that outstrip the national average. Coastal and rural areas are more mixed, but that reflects local supply dynamics rather than any structural weakness. With mortgage rates still fluctuating and the new government yet to signal detailed housing policy under Andy Burnham’s leadership, the second half of 2026 will test whether this steadier pace of growth has staying power.
