UK house price growth stalled for a second consecutive month in June, as rising interest rates and geopolitical uncertainty dampened buyer demand. The average price of a typical home edged down to £277,484 from £278,024 in May, according to Nationwide, defying economists' forecasts of a small rise.
Estate agents reported a cautious market, with families pushing to move before the new school year but prices remaining flat. Amy Reynolds of Antony Roberts said the mood is 'steady and selective' and predicted a quieter summer, with activity picking up in autumn once buyers have more clarity on rates and geopolitical tensions ease.
Mortgage rates remain elevated despite a slight dip in recent weeks as oil prices fell from war-driven highs. The average two-year fixed rate stood at 5.53% on Tuesday, up from 4.83% in early March, while five-year fixes also averaged 5.53%.
Nationwide's chief economist Robert Gardner said easing energy costs could reduce the need for further Bank of England rate hikes, potentially lowering mortgage pricing. Brent crude fell to $73 a barrel, down from a peak of over $120 earlier this year.
Shares in major housebuilders fell on the news, with Barratt Redrow down 1.6%, Persimmon dipping 0.5%, and Berkeley dropping 1.4%. However, annual house price growth edged up to 2.2% in June, and all UK regions saw year-on-year increases in the second quarter, led by Northern Ireland at 8.6%.
