1 June 2026
If you are covering the latest Nationwide house price index, please see the following comment from Ian Futcher, financial planner at Quilter:
“UK house prices are beginning to come under pressure as the various headwinds it is up against weigh on market momentum. House prices fell by 0.6% in May and annual price growth dropped from 3.0% in April to 1.7% in May, bringing the average property price to £278,024.
“The Bank of England has held rates for now, but the outlook remains uncertain. Much will depend on how the situation in the Middle East evolves and what that means for inflation and energy prices. Any sustained pressure here could yet force policymakers to rethink their path.
“For now, we can expect the housing market to remain subdued. Higher energy costs are continuing to feed through to household budgets and affordability will be increasingly stretched, weakening consumer sentiment further. What’s more, while mortgage rates have eased slightly from the peaks seen earlier in the year as lenders work harder to attract what is a limited pool of buyers, they are still elevated and we can expect them to be for some time yet.
“That is likely to keep house price growth in check over the coming months. Buyers are becoming increasingly price sensitive as higher borrowing costs and wider financial pressures bite, which means any upward movement in prices will likely be modest.
“Mortgage rates will continue to dictate the pace of the market in the months ahead. Swap rates are heavily influenced by global developments, and without a clear resolution to current tensions there is a risk they could edge higher again. For those looking to buy or remortgage, rates are no longer rising sharply, but nor is there a clear path downwards. In this environment, reviewing options early and keeping flexibility, ideally with the support of a mortgage adviser, will put borrowers in a stronger position as the market continues to adjust.”
