House price growth dropped to 2.1% in June, says Nationwide

Annual house price growth dropped to 2.1% in June, according to Nationwide.

The bank’s house price index slowed from a rate of 3.5% in May.

The average price of a UK home stood at £271,619 in June 2025.

Robert Gardner, nationwide’s chief economist, said the softening in price growth “may reflect weaker demand following the increase in stamp duty at the start of April”.

Nevertheless, he said, activity was still expected to pick up as the summer progressed, despite global economic uncertainty. 

“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,” he said.

Terraced homes saw the biggest percentage rise in prices over the past 12 months, with average values up 3.6%.

The price growth of flats slowed to 0.3% from 2.3% in the last quarter, while semi-detached properties recorded a 3.3% annual increase, and detached properties saw a 3.2% year-on-year rise.

Price growth was highest in Northern Ireland at 9.7% and lowest in East Anglia at 1.1%.

Ryan Etchells, chief commercial officer at Together, said:”The latest fall in house price growth indicates an expected downturn in the market following the stamp duty changes brought in in April.

“However the fall may ease affordability issues for some buyers and we have seen many lenders reducing mortgage rates. 

“We would also expect to see more cuts if, as expected, the Bank of England continues to gradually reduce the base rate over the course of the year.”