Published 30th June 2026

Executive summary

• Higher mortgage rates and political uncertainty have shrunk the pool of home buyers – sales agreed are 7% lower in June
• House price inflation has edged lower to 1.4%
• Mortgage rates peaked at 5% in April having started the year at 4% and are now falling. The cash cost for buyers varies widely
• Mortgage costs are £244 a month higher in London but just £69 in the North East since January
• Sales are down in across areas and house price inflation varies from 3.5% in northern England to small price falls in the south
• We expect price inflation to drift lower in H2, while sales agreed are on track to be 6-8% lower than last year at 1.1m completions

See our London House Price Index and detailed price metrics for 65 cities.