UK House Price Growth Slows to 2.1% in June

UK house prices rose by 2.1% in the year to June, a slowdown from 3.5% in May, according to the latest figures from Nationwide. On a monthly basis, prices fell by 0.8% after seasonal adjustments, bringing the average UK property price to £271,619.

“House price growth eased to 2.1% in June from 3.5% in May,” said Robert Gardner, Nationwide’s Chief Economist. “Monthly prices declined by 0.8% after adjusting for seasonal trends. This softening in growth may be linked to a reduction in demand following the increase in stamp duty in April. However, we still expect housing market activity to improve over the summer, despite ongoing global economic uncertainty, as conditions for prospective buyers in the UK remain generally favourable.”

Gardner highlighted several positive economic indicators. “Unemployment remains low, wages are growing at a steady pace in real terms, household finances are strong, and borrowing costs could ease slightly if the Bank Rate is reduced in the coming quarters, as many analysts anticipate.”

Regional Trends: Slower Growth Across the UK

Nationwide’s quarterly data for Q2 2025 showed a slight cooling in house price growth across most UK regions.

“Northern Ireland remained the strongest performing area, though annual growth fell to 9.7% from 13.5% in Q1,” said Gardner. “While still well ahead of other UK regions, the rate is comparable to recent growth in Ireland’s border counties. Scotland saw a 4.5% annual increase, and Wales recorded a 2.6% rise.”

In England, annual house price growth was 2.5%, down from 3.3% in the first quarter. The gap between northern and southern regions narrowed.

• Northern England (including the North, North West, Yorkshire & The Humber, East Midlands and West Midlands) saw prices rise by 3.1%.

• Southern England (including South West, Outer South East, Outer Metropolitan, London and East Anglia) recorded a 2.2% annual rise.

Within England, the North led with a 5.5% annual increase in prices, while East Anglia saw the slowest growth at just 1.1%.

Terraced Properties See Strongest Growth

A breakdown by property type revealed varied trends over the past year.

“Terraced homes experienced the highest price increases, with average values rising by 3.6% year-on-year,” Gardner said.

“Flats recorded slower growth, with annual prices up by just 0.3%, compared to 2.3% in the previous quarter. Semi-detached homes saw prices rise by 3.3%, while detached properties were up by 3.2%,” he added.

Market Outlook

The recent dip in price growth is viewed by many as a result of April’s stamp duty changes and broader economic pressures. However, lower price increases may offer some relief to potential buyers facing affordability challenges.

High living costs and uncertainty over future interest rate changes continue to weigh on buyer sentiment. Even so, the fundamentals—such as low unemployment, rising real incomes, and relatively strong household finances—suggest that the market could regain momentum as the year progresses.

The construction of more affordable housing has been identified as one potential solution to long-term housing issues, though planning and implementation delays mean it is unlikely to have an immediate impact.