FX.co ★ UK House Price Growth Below Expectations

In June 2025, the UK Nationwide House Price Index revealed a year-on-year increase of 2.1%, a slowdown from May's 3.5% growth and under the market's anticipated rise of 3.3%. This was the mildest growth since July 2024. According to Robert Gardner, Nationwide's Chief Economist, this deceleration in price growth is likely due to softened demand after April's stamp duty hike. However, activity is predicted to rebound as the summer progresses, even amidst global economic uncertainties, due to favorable conditions for prospective homebuyers in the UK. The unemployment rate remains low, real-term earnings (adjusted for inflation) continue to grow robustly, household balance sheets are stable, and borrowing costs could decrease if the Bank Rate is reduced in the coming months, as most analysts project. On a monthly scale, house prices decreased by 0.8%, contrasting with May's 0.4% increase and countering predictions of a 0.2% rise.