Published by Global Banking & Finance Review®
Posted on July 1, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleUK house prices dropped by 0.8% in June, the largest fall since 2022, as reported by Nationwide. Economists had predicted a rise, but annual growth slowed to 2.1%.
LONDON (Reuters) -British house prices fell by 0.8% in June, a sharper fall than forecast and the biggest monthly decline in more than two years, as a discount on property transactions ended, data from mortgage lender Nationwide showed on Tuesday.
Economists polled by Reuters had forecast a 0.2% monthly increase.
For the year, house prices were 2.1% higher than a year ago, below a 3.5% rise in May and lagging a consensus for a 3.1% annual increase.
"The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April," Robert Gardner, chief economist at Nationwide, said.
"Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive."
Other measures of Britain's housing market have shown a mixed picture after the expiry of a temporary tax discount scheme for first-time homebuyers ended.
Bank of England data on Monday showed lenders approved more mortgages than expected in May, helped by lower borrowing costs.
The BoE held interest rates at 4.25% last month, and investors expect the central bank to reduce borrowing costs in two further quarter-point moves to 3.75% by the end of the year.
(Reporting by Suban Abdulla; Editing by Kate Holton)
UK house prices fell by 0.8% in June, marking the biggest monthly decline in over two years.
For the year, house prices were 2.1% higher than a year ago, down from a 3.5% rise in May.
The decline may reflect weaker demand following the increase in stamp duty at the start of April.
The Bank of England reported that lenders approved more mortgages than expected in May, aided by lower borrowing costs.
Investors expect the Bank of England to reduce borrowing costs to 3.75% by the end of the year, following the current rate of 4.25%.
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