UK house prices rise 2.2% annually in June

UK house prices showed signs of resilience in June, with annual growth accelerating even as the market remained subdued on a monthly basis. According to data released on Wednesday, July 1, 2026, by Nationwide Building Society, the average UK house price was £277,484, representing a 2.2% annual increase compared to 1.7% in May. Month-on-month, however, prices were broadly flat after seasonal adjustments, with a slight nominal decline from £278,024.

Nationwide's chief economist, Robert Gardner, attributed the recent market softness to uncertainty stemming from the conflict in the Middle East, which had driven up energy prices and market interest rates. This led to weakened consumer confidence and a noticeable fall in mortgage approvals in May. Gardner noted that the subsequent signing of a memorandum of understanding between the US and Iran has helped push oil prices back toward pre-conflict levels. If this trend continues, he said, the Bank of England may not need to raise interest rates as much as previously anticipated, a view supported by lower-than-expected UK inflation in recent months.

A shift in market expectations for the future path of the Bank of England's base rate has...