1st Jul 2026 07:17
(Alliance News) - Annual house price growth ticked higher in June, though prices were flat on-month, according to data from Nationwide on Wednesday.
The Nationwide house price index showed annual house price growth picked up to 2.2% in June from 1.7% in May.
On a seasonally adjusted monthly basis, house prices were broadly flat, after a 0.6% fall in May.
The average UK house price, not seasonally adjusted, stood at GBP277,484 in June compared to GBP278,024 in May.
Nationwide Chief Economist Robert Gardner said: "It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates. Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.
"While geopolitical tensions remain high, the recent signing of the memorandum of understanding between the US and Iran has seen a fall in oil costs."
Gardner added: "If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated - a view reinforced by the fact that UK inflation has also been lower than expected in recent months. In recent weeks a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing."
If this is maintained, Gardner said it will "help to restore household confidence" and "ease affordability constraints". This could allow a recovery in housing market activity, as long as there is not an adverse impact from domestic political uncertainty.
All thirteen UK regions saw positive annual house price growth in the second quarter overall.
Northern Ireland outpaced the rest of the UK, with 8.6% annual price growth.
Gardner said: "This persistently strong performance has resulted in a deterioration in housing affordability in the region, in contrast with the UK average, which has generally been improving."
By Michael Hennessey, Alliance News reporter
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