UK house prices stall for second straight month as agents warn of summer slump
Average price of typical home little changed at £277,484 in June, says Nationwide, while housebuilder shares fallBusiness live – latest updatesUK house price growth stalled for a s
By The Guardian
UK house prices stalled for a second consecutive month in June as rising interest rates and economic uncertainty hurt homebuyer demand, with agents warning of a potential summer slump. The average price of a typical UK home edged down slightly to £277,484 last month from £278,024 in May, according to Nationwide, which recorded a 0.6% month-on-month fall in May before prices flattened in June.
Economists had forecast a small monthly rise of 0.1% for June, but the data showed prices were effectively flat month-on-month, while annual growth reached 2.2%, below the 2.4% rise predicted in a Reuters poll. The stagnation reflects a market where buyer demand has cooled by around 10%, with average asking prices falling 0.6% to £376,191, marking the biggest June drop in 14 years.
Key drivers include a seasonal summer slowdown, high stock levels increasing competition between sellers, and buyers becoming more cautious and selective amid ongoing economic uncertainty. Despite the slowdown, falling mortgage rates, which have dropped from 5.18% to 5.07%, are paving the way for a potential recovery, with the market remaining price-sensitive but stable.
First-time buyers are now searching for homes worth £254,750, £10,000 more than a year ago, while annual house price growth in Scotland, Northern England and Wales ranges from 2% to 3.6%, supported by improved affordability and mortgage lending conditions. The outlook remains one of stability rather than a sharp slowdown, with committed movers and confident first-time buyers keeping the market active despite higher borrowing costs.