Copy article

Nationwide says annual house price growth edges higher in June

ended 01. July 2026

UK annual house price growth picked up to 2.2% in June, from 1.7% in May, Nationwide's House Price Index said.

Northern Ireland remained best performing region, with prices up 8.6% year on year in Q2 2026.

Outer South East weakest performing region, with 0.1% annual rise.

Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, 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 signing of a memorandum of understanding between Iran and the US helped push oil prices back towards the levels prevailing before the conflict began.

“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 maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters, providing that domestic political uncertainty does not adversely impact sentiment."

  • What is your response to the figures?
  • Are house prices on the way up again?
  • Why is the property market struggling?

Responses asap.

4 responses from the Newspage community

Copy all

Copy

Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Even with oil prices falling, we are still a long way from where mortgage pricing was before the war. Even with the outlook for base rate hikes subsiding, that will not be enough to get the market moving. Stamp duty reform will be the only thing to get Britain moving and with Burnham closer to No 10, that could be a real possibility.
Copy

Editor
Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
The modest rebound suggests the housing market is stabilising temporarily, rather than entering another boom and can change again very quickly.

Demand is still constrained by affordability, elevated borrowing costs and fragile consumer confidence.

Global geopolitical tensions, energy price volatility and ongoing UK political uncertainty are all encouraging buyers to pause major financial decisions. I am seeing clients struggling to sell their properties, especially in the £1m+ price range.

At the same time, more landlords exiting the market is increasing supply in some areas, limiting price growth.

Unless mortgage rates fall materially and confidence improves, expect a patchy regional recovery rather than a broad-based surge in house prices.
Copy

Editor
Andrew Montlake
CEO at Coreco
The big question is whether or not this can be sustained and we all know sentiment is everything in the housing market. A Burnham bounce, a period of nice weather and even England having a good World Cup campaign can contribute to a feel good factor.
However, we all know that there are some headwinds to be negotiated and the housing market can be a fickle beast at the best of times.
I still remain convinced that the next six months could prove to be a good time to buy and canny buyers will continue to make the best of the buyers market.
Copy

Editor
Rupert Collingwood
Founder at The London Broker
Whilst it’s positive to see some growth, the devil is in the detail, as house price values will vary from street to street, house to house.
The growth is likely concentrated in particular market segments, most likely the more affordable end of the property ladder, where activity and transactions are also concentrated, with mid and upper segments likely losing ground.
The anaemic growth in the South East is likely a real time fall taking into account inflation, which would align with what we are seeing on the ground.
Mr Gardners comments regarding political uncertainty are well made, particularly given recent comments from the likely future PM regarding housing and changes to property taxation. Nothing helps cool the market faster than politicians floating kites aimed at tax changes on the biggest asset most people buy and sell.