The latest Nationwide house price index has provided what some regard as a surprise – house price growth picking up.
Annual house price growth picked up to 2.2% in June, from 1.7% in May.
This is despite no change in average prices over the past month.
Robert Gardner, Nationwide’s chief economist, says: “In recent weeks a shift in market expectations for the future path of [the Bank of England] base 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.”
The Nationwide’s regional house price indices for Q2 (the three months to the end of June) indicate that all regions saw positive annual house price growth.
In response to the good news, Nathan Emerson – chief executive at Propertymark – comments: “House price growth demonstrates that there remains a healthy level of demand across many parts of the UK, despite ongoing affordability pressures.
“However, national house price trends only tell part of the story, with Propertymark member agents continuing to report significant regional variations depending on local supply and buyer demand.
“Sellers should be encouraged by rising values, but realistic pricing remains crucial. Homes that are marketed at the right price continue to generate the strongest interest, whereas overpricing can quickly reduce momentum.”
Jeremy Leaf, a London agent and former RICS residential chairman, says: “There is an expectation that we may be close to the top of the bottom rather than the bottom of the top.
“As around four out of five sellers are buyers, the smart set are moving on by concentrating on the difference between the two levels rather than being fixated on achieving a standout figure.”
Iain McKenzie, chief executive of The Guild of Property Professionals, comments: “While the market continues to navigate a mix of economic and political uncertainty, there are signs that conditions are gradually improving.
“We are already seeing a number of lenders cutting mortgage deals, which will help improve affordability, increase borrowing power and give some buyers renewed confidence.
Tom Bill, head of UK residential research at Knight Frank, adds: “As greater stability returns to energy markets, we have seen mortgage rates edge lower, which will support demand.
“Just as one headwind eases, another gathers strength. Rising domestic political uncertainty means we may see another summer of speculation around tax, which would keep a lid firmly on activity.”
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Nationwide’s data
| Nations | Average price (Q2 2026) | Annual % chg this quarter | Quarterly % chg |
| N Ireland | £226,699 | 8.6% | -0.2% |
| Scotland | £195,928 | 3.5% | 1.1% |
| Wales | £220,337 | 3.5% | 0.9% |
| England | £315,208 | 1.5% | 0.3% |
| UK Fact File (Q2 2026) | |
| Quarterly average UK house price | £278,784 |
| Annual percentage change | 2.2% |
| Quarterly change (seasonally adj.) | 0.6% |
| Most expensive region | London |
| Least expensive region | North |
| Strongest annual price change | N Ireland |
| Weakest annual price change | Outer S East |
