UK house prices flat in June - Nationwide
By Abigail Townsend
Date: Wednesday 01 Jul 2026
(Sharecast News) - UK house prices were flat in June, industry data showed on Wednesday, on the back of cautious consumer sentiment.
According to the latest Nationwide house price index, prices rose 2.2% on an annual basis but were broadly unchanged month-on-month, following a 0.6% decline a month earlier. Economists had expected a slightly higher annual increase, of 2.4%.
The average house price now stands at £277,484.
However, Nationwide chief economist Robert Gardner said it was not surprising that the market had softened given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices.
"Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May," he said.
The outbreak of war in the Gulf at the end of February sent global energy prices soaring, reigniting inflation fears and dampening interest rate expectations. The Bank of England had been slated to continue trimming Bank Rate this year but has instead left it on hold.
However, the US and Iran have now signed a memorandum of understanding, under which they have agreed to halt fighting and reopen the Strait of Hormuz while a long-term peace deal is negotiated. Oil prices are now trading sharply lower as a result.
Gardner said: "In recent weeks a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing.
"If maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters - provided that domestic political uncertainty does not adversely impact sentiment."
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