Copy article

Nationwide: annual house price growth edged higher in May

ended 02. June 2025

The annual rate of house price growth increased marginally in May to 3.5%, compared to 3.4% in April, while house prices were up 0.5% month on month, according to the Nationwide. Newspage asked property market and financial services experts for their views, below.

7 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Rob Peters
Principal at Simple Fast Mortgage
Demand in May was steady, not booming, but definitely holding up. Lower mortgage rates earlier in the year helped keep things ticking along after the Stamp Duty holiday passed, and we’ve seen good activity from both movers and first-time buyers. However, recent rate rises and high inflation could put a cold chill on sentiment heading into summer. Buyers remain optimistic, especially as affordability shows signs of loosening up. We’re likely to see a patchy summer market, stronger in areas with realistic pricing and good stock, weaker where sellers are holding out for higher values. The biggest headwind is always buyer confidence. If buyers believe rates are climbing again, that could spook the more price-sensitive parts of the market.
Star Quote
Copy

Editor
Katy Eatenton
Mortgage & Protection Specialist at Eatenton Finance
There was no Mayday call from the property market last month. Once again, the housing market has shown how resilient it is. Despite the fact the stamp duty incentives are now behind us, demand has remained strong overall. In part this was driven by innovation among lenders and falling mortgage rates, although they are starting to edge up again a little now. The lack of supply is also supporting price growth. One eye has to be kept on inflation but on the whole we're optimistic as we head into the summer.
Copy

Editor
Tony Redondo
Founder at Cosmos Currency Exchange
The UK property market is in flux. Demand in May was so-so. Zoopla reports a 6% rise in sales agreed, but Rightmove notes a 4% drop in buyer interest. Sub-4% mortgage rates have kept things moving following the Stamp Duty deadline, but headwinds dominate the economic outlook with Huw Pill’s inflation fears and a mere 34.5bp of expected rate cuts forecast for the rest of 2025. Meanwhile, inflation is at 3.5% and rising, there are over 53 companies per 10,000 going insolvent, and Land Registry delays are hindering transactions. Together, the headwinds easily outweigh the tailwinds like the recent wage growth. Summer may bring 2%-4% price growth. The market’s resilience masks deeper issues of systemic unaffordability and economic fragility. Without addressing housing supply or real wage stagnation, price stability may come at the cost of long-term exclusion for younger buyers, exacerbating inequality in an already strained economy.
Copy

Editor
Ranald Mitchell
Director at bad credit mortgage specialists Charwin Mortgages
Rural house prices have outpaced urban growth by a clear margin, up 23% since 2019 compared to 18% in cities and it’s no mystery why. More buyers are fleeing middle-class suburbia in favour of greener pastures, literally and socially. When your neighbour’s biggest concern is the dandelion on your drive ruining their kerb appeal, it’s no wonder people are heading for the hills. Post-pandemic habits may have cooled, but the countryside’s appeal hasn’t. People want space, privacy, and maybe a cow or two, not constant passive-aggressive WhatsApp group chats about the length of their grass. The rural escape isn’t just a trend; it’s a quiet revolution against suburban sameness.
Copy

Editor
Justin Moy
Managing Director at EHF Mortgages
Activity remained quite buoyant during May, as buyers continued to look for well priced property even if the stamp duty costs were more expensive. The current shift to a buyers' market continues to undermine pricing, with leasehold properties suffering across many parts of the UK. With a small rise in mortgage rates in May not making too much impact, improved affordability might be enough to help the market during the summer.
Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Asset prices continue to rise and will keep doing so. Lenders are relaxing their stress tests meaning they are lending more and the advent of 100% borrowing could keep the wheels on the property market going. Regardless of what the government tells you the £1.5 million houses that were promised are no where to be seen. Those who have been trying to call the market and waiting for a massive correction are going to be sorely disappointed.
Copy

Editor
Chris Barry
Director at Thomas Legal
Volume of transactions has turned to more of a normal level following the extremes of the past few years. This new era of consistency will drive a solid market and asset prices, including housing, will continue to grow as the government debt rises