UK House Price Index: how it works and what the latest figures show

What the UK House Price Index is

The UK House Price Index is the official measure of house prices, produced jointly by HM Land Registry and the Office for National Statistics. It is calculated from actual completed sale prices recorded at the Land Registry, covering the whole market rather than a lender's own customers. Because it waits for sales to complete and be registered, it is comprehensive but published with a lag of around two months. The June 2026 figures are released at 9:30am on Wednesday 19 August 2026.

The index uses data from every residential property transaction in England, Wales, Scotland and Northern Ireland that has been registered with the Land Registry. This gives it a far wider coverage than indices based on a single lender's mortgage approvals. The index is published monthly, with each release covering a single month of completed transactions.

The lag between the sale month and publication is necessary because the index relies on the completion and registration of sales, which can take several weeks. This means the index is always looking at the market from a few months in the past, rather than giving an immediate read on current conditions.

What the latest figures show

The average UK house price was 271,000 pounds in May 2026, up 2.7 percent over the year and 0.3 percent on the month, on a provisional basis. In England the average was 292,000 pounds, up 2.3 percent over the year; the most expensive area was Kensington and Chelsea at about 1.3 million pounds. Annual growth had eased from 3.9 percent in the year to April 2026, pointing to a cooling market.

The slowdown in annual growth from April to May indicates that price pressures are easing. The monthly rise of 0.3 percent is modest, suggesting that the market is stabilising rather than accelerating. The figures are provisional and may be revised in later releases as more transaction data becomes available.

Private rents also continued to rise. The average UK monthly rent was 1,388 pounds in the year to June 2026, up 3.3 percent. This means that while house price growth is slowing, rental costs are still increasing at a faster pace than earnings for many households.

Why the indices disagree

Lender indices from Nationwide and Halifax (now branded Lloyds) are based on their own mortgage-approval valuations, so they are timelier but narrower than the official HPI. Rightmove measures asking prices, which lead the market and can move differently from sold prices; it reported the largest August asking-price drop since 2018. Zoopla uses sold prices, mortgage valuations and agreed sales; in mid-2026 it showed annual growth around 1.3 percent.

The differences between the indices are not errors; they reflect different data sources and methodologies. The lender indices are based on valuations of properties for which they have approved mortgages. This means they only cover buyers who are using that particular lender, and the valuations are carried out at the point of mortgage offer, which is before the sale completes.

Rightmove's index is based on asking prices set by sellers when they list their property. Asking prices are not the same as sold prices, and sellers often have to reduce their asking price to achieve a sale. This means the asking price index can move ahead of or behind the sold price indices, depending on market conditions.

Zoopla's index combines sold prices from the Land Registry with its own data on mortgage valuations and agreed sales. This gives it a broader base than the lender indices but still not as complete as the official HPI. The official HPI is the most complete but the most lagged, which is why headline figures vary between sources at any moment.

What is driving prices in 2026

Higher mortgage rates have weighed on demand: average fixed rates rose again through the summer, adding to monthly repayments for new buyers. A high supply of homes for sale, close to a multi-year high for the time of year, has given buyers more room to negotiate. Regional differences are wide: the North of England has seen stronger gains while London values have slipped.

The rise in mortgage rates through the summer has reduced the purchasing power of buyers. For a typical borrower, a small increase in the interest rate can add hundreds of pounds to annual repayments. This has made some potential buyers delay their purchase or lower their budget, which in turn puts downward pressure on prices.

The supply of homes for sale has increased, giving buyers more choice and more leverage in negotiations. Sellers who need to move quickly may have to accept offers below their asking price. This is particularly the case in areas where supply has risen most sharply.

Regional trends remain uneven. The North of England has continued to see stronger price growth, while London has seen values slip. This reflects differences in affordability, employment patterns and the mix of property types in each region. Forecasters expect annual growth to stay low, easing toward around 1 percent by the end of 2026 on some measures.

How to use the data

For a whole-market, official figure use the UK HPI; for the timeliest read use the lender and portal indices, understanding their narrower basis. Look at annual change and longer-term trends rather than a single month, especially in areas with few sales where monthly figures are volatile. The Land Registry's online UK HPI tool lets you look up average prices and index values by area. House prices are one input to affordability; mortgage rates, deposit and income matter as much as the headline average.

When comparing figures from different sources, it is important to check the date of the data and the methodology used. The official HPI is the only measure that covers all completed sales, so it is the most reliable for understanding the overall market. However, its lag means it cannot show the most recent movements.

For a timelier picture, the lender and portal indices can be useful, but they should be interpreted with their limitations in mind. A single month's figure, whether from the official HPI or a lender index, can be affected by the mix of properties sold. Looking at the annual change smooths out some of this volatility.

The Land Registry's online tool allows users to search for average prices and index values by postcode, local authority or region. This can be helpful for understanding what is happening in a specific area, rather than relying on the national average, which can mask wide regional differences.

Finally, house prices are only one part of the affordability picture. The cost of a mortgage depends on the interest rate, the size of the deposit and the borrower's income. A stable or falling average price does not necessarily make housing more affordable if mortgage rates are rising at the same time.

Frequently asked questions

What is the average UK house price now?

The UK House Price Index put the average at 271,000 pounds in May 2026, up 2.7 percent over the year. The June 2026 figures are published on 19 August 2026.

Why does the UK HPI differ from Nationwide and Halifax?

The UK HPI uses actual completed sale prices for the whole market, so it lags. Nationwide and Halifax use their own mortgage-approval valuations, which are timelier but narrower.

When is the next UK House Price Index released?

The June 2026 UK HPI is published at 9:30am on Wednesday 19 August 2026 by HM Land Registry and the ONS.

Are house prices rising or falling?

On the official index they rose 2.7 percent in the year to May 2026, but growth is cooling, and lender and portal measures showed slower growth or falling asking prices in mid-2026.

Where can I check prices for my area?

Use the UK House Price Index tool on the Land Registry website to look up average prices and index values by local area.