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Nationwide say house prices were down 0.6% in May

ended 01. June 2026

Nationwide has said UK annual house price growth slowed to 1.7% in May, from 3.0% in April, its House Price Index shows.

House prices were down 0.6% month on month, the first monthly decline so far this year.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said: “UK annual house price growth slowed to 1.7% in May, from 3.0% in April. Prices fell by 0.6% month on month, after taking account of seasonal effects – the first monthly decline so far this year.

“Given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates, some loss of momentum was to be expected.  Indeed, consumer confidence has weakened noticeably since the start of the conflict, with GfK’s headline index falling to its lowest level since late‑2023 in April, with only a marginal increase in May.

“Measures of housing market sentiment have also deteriorated. The Royal Institution of Chartered Surveyors reported a sharp fall in new buyer enquiries in March, taking the index to its weakest reading since 2023 and remained deep in negative territory in April."

  • How negative are things looking for the housing market?
  • Was 2026 looking positive, but now not so much?
  • What are your predictions for the coming months?

Responses asap.

6 responses from the Newspage community

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Shaun SturgessVerified
Director at Sturgess Mortgage Solutions
The impact of the Middle East conflict, and specifically the higher mortgage rates it triggered, is now starting to feed through. While first-time buyers will be elated by this news, those already on the property ladder will be feeling anything but. Current conditions in the property market are perfect for anyone who wants to snap up a property at a bargain price as buyers hold all the cards.
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Riz MalikVerified
Independent Financial Adviser at R3 Wealth
The war on Iran has impacted a housing market that could have been assisted by lower rates at the begining year. On top of that many accidental landlords have realised that enough is enough and the maths isn’t mathsing when it comes to their properties and want out. Only a significant drop in interest rates or stamp duty concessions can provide the adrenaline shot that is needed.
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Babek IsmayilVerified
CEO at homebuying platform OneDome
This latest data from the Nationwide reinforces the buyers' market we are now in. With mortgage rates still noticeably higher than they were at the end of February before the war began, and sentiment as a whole understandably weak, first-time buyers are in a position to negotiate very hard on price.
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Chris BarryVerified
Director at Thomas Legal
2026 started unseasonably strong as interest rates were predicted to decline along with pent up demand carried over from the tail end of 2025.

The result of this early spike in activity has meant that spring activity, which is typically buoyant, has started to slow earlier.

House prices generally are still proving resilient as activity looks set to continue at a “normal” pace
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Justin MoyVerified
Managing Director at EHF Mortgages
The property market is arguably the most accurate barometer of the uk economy, and how confident the public feel generally. When you combine higher taxation, Middle East woes and the inevitable inflationary pressures on the horizon, the vast majority of home movers will sit on their hands. Mix in the renters rights act and it’s a potentially toxic brew for landlords too. All roads point to rate cuts, too many No Entry at the moment unfortunately.
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Darryl DhofferVerified
Founder at The Mortgage Geezer
The brief optimism that kicked off 2026 has evaporated. The housing market isn’t just cooling; it’s freezing over under the weight of geopolitical reality. That 3.0% annual growth in April felt like a recovery, but May’s collapse to 1.7% proves it was a mirage. Falling 0.6% in a single month, the first outright decline this year ,signals that the momentum is dead. The Middle East conflict has shattered any hope of a stable spring bounce, dragging consumer confidence down to depths not seen since late 2023. Things look exceptionally grim. With energy prices surging again and market interest rates ticking upward, buying a home has pivoted from a difficult aspiration to a financial gamble. For the coming months, expect a grinding stagnation. Sellers will have to swallow bitter price cuts just to close deals, while buyers sit on their hands, paralyzed by high mortgage rates and soaring bills.