UK house prices rose by 2.2% in the year to June, according to Nationwide, up from annual growth of 1.7% in May. However, prices were flat month on month, pointing to a more cautious market despite the stronger annual figure.

The latest Nationwide data follows HMRC figures published earlier this week, which showed UK residential property transactions fell by 2% in May. Transactions dropped from 100,440 in April to 98,450 in May 2026.

Market sentiment has been affected by uncertainty linked to the US-Iran conflict. Nationwide’s Robert Gardner said the signing of a memorandum of understanding between Iran and the US had helped push oil prices back towards pre-conflict levels, which should support consumer confidence.

Mortgage pricing also eased during June. Moneyfacts said average fixed rates fell steadily as institutional borrowing costs declined amid more positive signals from the Middle East. The average two-year fixed rate fell from 5.68% in May to 5.53%, while the average five-year fix also reached 5.53%, down from 5.63% a month earlier.

Despite cheaper mortgage rates, buyers remain price-sensitive. June usually brings modest price growth, averaging 0.1% over the past decade, but this year’s weaker monthly performance suggests some sellers are lowering expectations.

The number of homes for sale is also unusually high for this time of year, giving buyers more choice and greater negotiating power.

Regional differences remain clear. Prices have fallen across southern England and Wales, while more affordable areas have performed better, including the North East and Scotland, where annual prices rose by 3.3% and 3.2% respectively.

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