Annual Growth Falls Below Expectations
In June, UK residential property prices rose by just 2.1% year-over-year, marking the slowest annual increase since July 2024, according to data from the British Mortgage Association.
This figure fell short of the consensus forecast of 3.3% and comes after a 3.5% annual rise in May.
Monthly Prices Drop for First Time in Months
On a monthly basis, house prices declined by 0.8%, bringing the average home price to £271,619 ($374,300). In contrast, prices had increased by 0.4% in May.
Nationwide: Temporary Surge Likely Caused by Stamp Duty Deadline
Analysts at Nationwide attributed the slowdown to weakened demand following a short-lived spike in April. Buyers likely rushed to complete purchases before the stamp duty increase, creating a temporary surge in demand.
Underlying Market Conditions Remain Supportive
Despite the current price dip, experts note that the UK housing market remains broadly stable, supported by:
-
Low unemployment
-
Slowing inflation
-
Rising wages
These factors continue to offer a favorable environment for property buyers and sellers alike.
