UK House Price Growth Below Expectations
The UK Nationwide House Price Index rose 2.1% year-on-year in June 2025, easing from a 3.5% increase in May and falling short of market expectations for a 3.3% gain. This marked the softest reading since July 2024. Nationwide’s Chief Economist, Robert Gardner, noted that the cooling in price growth likely reflects weaker demand following April’s stamp duty increase.
Still, activity is expected to pick up as summer advances, despite global economic uncertainties, as conditions for potential homebuyers in the UK remain supportive. The unemployment rate remains low, earnings are rising at a healthy pace in real terms (after adjusting for inflation), household balance sheets are strong, and borrowing costs may ease further if the Bank Rate is lowered in the coming quarters, as most analysts expect. On a monthly basis, prices fell 0.8%, compared with a 0.4% rise in May and defying forecasts of a 0.2% increase.