House Price Growth Slows in June – Responses from the Industry – TNT

The Annual rate of house price growth slowed to 2.1% in June, from 3.5% in May, Nationwide’s latest House Price Index reveals.

Northern Ireland remained the top performing area, with annual house price growth of 9.7.

East Anglia was the weakest performing region, with 1.1% year-on-year rise.

Headlines	Jun-25	May-25
Monthly Index*	537.3	541.6
Monthly Change*	-0.8%	0.4%
Annual Change	2.1%	3.5%
Average Price (not seasonally adjusted)	£271,619	£273,427

* Seasonally adjusted figure (note that monthly % changes are revised when seasonal adjustment factors are re-estimated)

Robert Gardner, Nationwide’s Chief Economist, said: “UK house price growth slowed to 2.1% in June, from 3.5% in May. Prices declined by 0.8% month-on-month, after taking account of seasonal effects.  The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April. Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive.

“The unemployment rate remains low, earnings are rising at a healthy pace in real terms (i.e. after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we and most other analysts expect.

Most regions saw a softening in house price growth in Q2 2025

Nationwide’s regional house price indices are produced quarterly, with data for Q2 (the three months to June) indicating that the majority of regions saw a modest slowdown in annual house price growth.

 

Northern Ireland remained the strongest performer by a wide margin, though it did see a slowing in annual price growth to 9.7%, from 13.5% in Q1. While significantly ahead of other UK regions in Q2, it was similar to the robust rates of growth seen in border regions of Ireland in recent quarters. Scotland recorded a 4.5% annual rise, while Wales saw a 2.6% increase.

Across England overall, prices were up 2.5% year-on-year, a slight softening from the 3.3% annual rise seen last quarter. The north-south divide in house price performance narrowed during the quarter. Average prices in Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands) were up 3.1% year on year, whilst those in Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) were up 2.2%.

The North was the top performing region in England, with prices up 5.5%. Meanwhile, East Anglia was the weakest performer with annual growth of 1.1%.

Nationwide’s most recent data by property type shows that terraced houses have seen the biggest percentage rise in prices over the last 12 months, with average prices up 3.6% year on year.

Flats saw a further slowing in annual price growth to 0.3%, from 2.3% last quarter. Semi-detached properties recorded a 3.3% annual increase, while detached properties saw a 3.2% year-on-year rise.

 

Quarterly Regional House Price Statistics       

Regions over the last 12 months

 

UK Fact File (Q2 2025)
Quarterly average UK house price	£272,751
Annual percentage change	2.9%
Quarterly change (seasonally adj.)	-0.4%
Most expensive region	London
Least expensive region	North
Strongest annual price change	N Ireland
Weakest annual price change	East Anglia

Industry reaction:

Jason Tebb, president of OnTheMarket, said: “There is still plenty of evidence of steady activity in the housing market, despite a considerable number of buyers bringing forward transactions in order to take advantage of the stamp duty holiday before it ended in March. Average house prices are being kept in check by the increase in stock, which exceeds supply in some areas.

“Interest-rate reductions are more important than ever in order to boost activity and momentum in the market now that the stamp duty holiday is no longer available. Four quarter-point base-rate cuts since last August have made all the difference to affordability and the ability to plan ahead with confidence. Further reductions will give the market added impetus as we head into the latter half of the year.

“Mortgage lenders continue to gently trim rates and ease criteria, which is further assisting borrowers dealing with stubborn inflation and the elevated cost of living.”

Nathan Emerson, CEO at Propertymark, commented: “Despite the fact we have witnessed much economic turmoil in the first half of the year, it is highly encouraging to see stability within the housing market as house price growth softened in June. We still sit in a phase of inflation not quite being where the Bank of England ideally want it to be and we still have elevated base rates. Nonetheless, it remains encouraging that consumers are still approaching the buying and selling process with a firm degree of confidence.

“Across the year to date, we have seen the average number of properties per member branch hold absolutely steady, and this year’s number represent a figure that is almost 20 per cent higher that the same period twelve months earlier.”

Amy Reynolds, head of sales at Antony Roberts, said: “While many sellers are reducing asking prices to attract interest, we’re still agreeing a strong number of sales – and prices are largely holding firm. We’re also seeing buyers lose out because they hesitated, expecting further price drops, only for someone else to come in and secure the property.

“My advice to buyers is simple: if you like a property, make an offer. The worst that can happen is it’s rejected. Don’t wait for the bottom of the market – you’ll only know when it was in hindsight, and if the right property isn’t available at that exact moment, you won’t benefit anyway.

“If you find the right home now, go for it.  Treat it as a place to live, not just an investment.”

Tom Bill, head of UK residential research at Knight Frank, stated: “The legacy of the March stamp duty cliff edge is high supply and softer demand, which is putting downwards pressure on house prices. The good news is that rate cut expectations are growing due to the weaker UK economic outlook. The bad news is that the Chancellor has zero financial headroom to play with, which means a re-run of 2024 and a game of ‘guess the tax rise’ ahead of the Budget. We think there will be modest single-digit house price growth by the end of the year but if you are planning to sell over the next few months, asking prices will need to reflect the fact it is very much a buyers’ market.”