FX.co ★ UK House Price Growth Above Expectations

In May 2025, the UK Nationwide House Price Index recorded a 3.5% increase compared to the same month a year earlier. This followed a 3.4% rise in April and surpassed market predictions of a 2.9% growth. On a month-on-month basis, house prices rose by 0.5%, recovering from a 0.6% decline in April and outperforming the anticipated 0.1% increase. According to Nationwide's Chief Economist, Robert Gardner, official figures revealed a significant rise in residential transactions in March, as buyers hurried to complete purchases before higher stamp duty rates took effect. Owner-occupier completions doubled, reaching their peak since June 2021. Despite this, mortgage approval statistics indicate that the property market has maintained its momentum even after the conclusion of the stamp duty holiday. Although global economic conditions remain uncertain, the environment for UK homebuyers is still advantageous, bolstered by low unemployment rates, robust real wage growth, healthy household financial situations, and the possibility of reduced borrowing costs should the Bank Rate be lowered as anticipated.