UK House Price Growth Picks Up in June, Nationwide Data Shows

Annual UK house price growth accelerated to 2.2% in June, up from 1.7% in May, according to figures from Nationwide, one of the country's largest mortgage lenders. The average home was valued at about £277,500, with prices broadly flat on a monthly basis once seasonal effects are taken into account. The pickup comes despite pressure on affordability from higher borrowing costs: mortgage rates rose earlier in the year amid the conflict in the Middle East and the resulting jump in energy prices and market interest rates, with the average two-year fixed deal climbing to around 5.5% by the end of June. The Bank of England has held its base rate at 3.75% through the first half of 2026, adopting a cautious stance as inflation risks persist, which has dampened earlier expectations of further rate cuts. Housing activity has been uneven across regions, with stronger growth in northern parts of the UK and softer conditions in parts of southern England and London. Analysts expect price growth to remain modest in the second half of the year as buyers weigh affordability and wider economic uncertainty.