Annual UK house price inflation stalls for first time in nearly two years

(Sharecast News) - UK house prices stalled in March, according to the latest figures from the Office for National Statistics, marking the first time that prices haven't increased in annual terms in nearly two years.

Average UK house prices remained at £268,000 in March, unchanged from the year before, with growth slowing dramatically from the 1.7% annual gain registered in February.

This is the first time house price inflation has fallen to zero since April 2024 and marks a significant slowdown from the recent peak of 5.1% in March 2025.

"The annual UK house price inflation rate slowed because average monthly prices fell by 0.4% between February and March 2026, compared with a large monthly rise of 1.2% in the same period a year ago; this happened ahead of the April 2025 changes to Stamp Duty Land Tax, in England and Northern Ireland," the ONS explained.

Average prices fell 0.6% year-on-year to £290,000 in England, rose 2.9% to £213,000 in Wales and gained 1.6% to £187,000 in Scotland.

Across English regions, the East Midlands and East of England were the only major areas to register house price inflation in March at just 0.7% and 0.1% respectively. London continued to see declining prices with annual deflation at -2.1%.

Meanwhile, average monthly private rents across the UK rose 3.5% year-on-year to £1,381 in April, with inflation picking up from 3.4% in March.