Annual house price growth in the UK fell to zero in the year to March 2026, according to official data published today. This marks a sharp slowdown from the 1.7% growth recorded in the 12 months to February 2026.
Monthly Price Decline
The annual inflation rate stalled because average monthly prices dropped by 0.4% between February and March 2026. This contrasts with a significant monthly rise of 1.2% during the same period a year earlier. The decline occurred ahead of the April 2025 changes to Stamp Duty Land Tax in England and Northern Ireland.
Regional Variations
Average house prices fell to £290,000 in England, a decrease of 0.6% over the year. In contrast, prices rose to £213,000 in Wales (up 2.9%) and £187,000 in Scotland (up 1.6%) during the 12 months to March 2026.
Rental Market Trends
Meanwhile, average monthly private rents in the UK increased by 3.5% to £1,381 in the year to April 2026, accelerating slightly from 3.4% in the year to March 2026. Regional rent increases varied: England saw a 3.5% rise to £1,438, Wales saw a 4.9% increase to £834, and Scotland experienced a 2.0% rise to £1,019. In Northern Ireland, average rents rose by 4.0% to £877 in the year to February 2026.
Highest and Lowest Rent Inflation
Within England, the North East recorded the highest annual rent inflation at 6.5%, while London had the lowest at 2.0% in the 12 months to April 2026.
Expert Commentary
Ken James, Director at London-based Contractor Mortgage Services, commented to Newspage: "A new chapter is opening in the UK property market and, for the first time in years, it's buyers who are stepping into the spotlight. Annual house price growth has effectively collapsed. While this may unsettle sellers, it marks a rare moment of opportunity for those looking to purchase, especially after years of being outpaced by rising prices, bidding wars and limited stock. With growth grinding to a halt, the market has shifted from a seller-dominated battlefield to a more balanced, even buyer-friendly, landscape. The power dynamic has changed, and buyers are beginning to realise they finally have the room to manoeuvre."
