Nationwide’s June House Price Index (HPI) reveals a slight rise in house prices, but wide regional variations in growth and demand persist.
Annual house price growth picked up slightly to 2.2% in June, from 1.7% in May. The average UK house price now stands at £278,784, a month-by-month change of 0.6%.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth picked up to 2.2% in June, from 1.7% in May, although prices were broadly flat in month-on-month terms, after taking account of seasonal effects.
“It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates. Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.”
He added: “While geopolitical tensions remain high, the signing of a memorandum of understanding between Iran and the US helped push oil prices back towards the levels prevailing before the conflict began.”
Northern Ireland remained the best performing region, with prices up 8.6% year-on-year in the second quarter of 2026. The outer South East was the weakest performing region, with a 0.1% annual rise.
Although Nationwide presents a subdued picture of the market, the response from property commentators has been slightly more optimistic following a run of negative sentiment reports and downbeat reaction.
“The headline number tells one story, but the regional picture tells a more interesting one,” RBC Capital Markets’ Anthony Codling noted. “Northern Ireland is doing its own thing entirely, running nearly four times hotter than the national average, while much of southern England is essentially flatlining.
“Mortgage rates remain the stubborn gatekeeper to a more meaningful recovery, with affordability still stretched by historical standards, and the Bank of England’s cautious approach to rate cuts keeping buyers in a holding pattern. The good news is that all 13 regions are now in positive annual growth territory, which is no small feat. The bad news is that for house builders hoping for a demand surge to justify a bullish volume outlook, this is a market that remains more tortoise than hare.”
Nathan Emerson, CEO at Propertymark, said: “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.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said: “On the ground, the picture is more nuanced than national headlines suggest.
“There is real caution at the more rate-dependent end of the market, but a good proportion of buyers are equity-rich or cash, and well-priced family homes in the right roads are still drawing competitive interest.”
She added: “There is the familiar pre-summer push from families wanting to be settled before the new school year, but the mood is steady and selective rather than booming or stalling. We expect a quieter, price-sensitive summer, with activity firming again in the autumn once buyers have more clarity on rates and the geopolitical noise has died down.”
