The 1.4% drop in contributes to the longer-term trend in the area reports Clara Margotin, Data Reporter

Estate agent signs with the word 'Sold' most prominent — Across the UK, average house prices increased 3.9% over the past year – (Credit – Radar)

House prices in Barnet dropped in May, falling more than the average across London, new figures show.

Figures from the Office for National Statistics show the average Barnet house price in the year to May was £590,194 – a 1.5% decrease on April.

It was below the average across London, where prices decreased by 1.4%.

The drop in Barnet contributes to the longer-term trend in the area, which has seen property prices in the area suffer a 4.1% annual decline.

It means the area ranked 29th among London’s 33 local authorities for annual growth, with the average price in Barnet falling by £25,000 over the past year.

The highest annual growth in London was in Havering, where property prices increased on average by 9.7%.

At the other end of the scale, properties in City of London lost 9.4% of their value.

Across the UK, average house prices increased 3.9% over the past year, reaching £269,000 typically.

Experts welcomed this return to a confident housing market following months of volatility brought by changes in stamp duty.

Meanwhile, separate ONS figures show Consumer Prices Index inflation rose to 3.6% in June – up from 3.4% in May, and the highest since January 2024.

The increase was unexpected, with many economists forecasting inflation to remain unchanged at 3.4%.

Andrew Montlake, chief executive at mortgage brokers Coreco said: “During the first half of 2025, the property market was definitely skewed by the stamp duty changes, with a lot of activity brought forward to secure the savings on offer. Now, things are getting back on track.

“Even though inflation ticked up slightly this morning, making the Bank of England’s tightrope walk between curbing inflation and promoting growth that little bit harder, it’s still likely that we will see at least one rate cut this year, if not two.”

He added: “The economy is stalling and desperately needs an injection of life, which will boost sentiment in bricks and mortar and see increased buyer activity. The second half of the year could be busy if the Bank of England delivers a rate cut in August.”

Jonathan Handford, managing director at Fine and Country, said: “The volatility that we saw in the spring – largely down to changes in stamp duty – is fading, and buyer sentiment is clearly recovering.”

Iain McKenzie, chief executive of the Guild of Property Professionals, said: “The increase in the average UK house price over the last year underscores a return to sustainable, confidence-driven growth.”

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