The Annual charge of home value development slowed to 2.1% in June, from 3.5% in Could, Nationwide’s newest Home Value Index reveals.
Northern Eire remained the highest performing space, with annual home value development of 9.7.
East Anglia was the weakest performing area, with 1.1% year-on-year rise.
| Headlines | Jun-25 | Could-25 |
|---|---|---|
| Month-to-month Index* | 537.3 | 541.6 |
| Month-to-month Change* | -0.8% | 0.4% |
| Annual Change | 2.1% | 3.5% |
| Common Value
(not seasonally adjusted) |
£271,619 | £273,427 |
* Seasonally adjusted determine (word that month-to-month % adjustments are revised when seasonal adjustment elements are re-estimated)
Robert Gardner, Nationwide’s Chief Economist, mentioned: “UK home value development slowed to 2.1% in June, from 3.5% in Could. Costs declined by 0.8% month-on-month, after taking account of seasonal results. The softening in value development could mirror weaker demand following the rise in stamp obligation at first of April. However, we nonetheless count on exercise to choose up because the summer season progresses, regardless of ongoing financial uncertainties within the world economic system, since underlying circumstances for potential homebuyers within the UK stay supportive.
“The unemployment charge stays low, earnings are rising at a wholesome tempo in actual phrases (i.e. after accounting for inflation), family steadiness sheets are robust and borrowing prices are more likely to average a bit of if Financial institution Charge is lowered additional within the coming quarters as we and most different analysts count on.
Most areas noticed a softening in home value development in Q2 2025
Nationwide’s regional home value indices are produced quarterly, with knowledge for Q2 (the three months to June) indicating that almost all of areas noticed a modest slowdown in annual home value development.
Northern Eire remained the strongest performer by a large margin, although it did see a slowing in annual value development to 9.7%, from 13.5% in Q1. Whereas considerably forward of different UK areas in Q2, it was much like the sturdy charges of development seen in border areas of Eire in latest quarters. Scotland recorded a 4.5% annual rise, whereas Wales noticed a 2.6% improve.
Throughout England general, costs have been up 2.5% year-on-year, a slight softening from the three.3% annual rise seen final quarter. The north-south divide in home value efficiency narrowed in the course of the quarter. Common costs in Northern England (comprising North, North West, Yorkshire & The Humber, East Midlands and West Midlands) have been up 3.1% yr on yr, while these in Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) have been up 2.2%.
The North was the highest performing area in England, with costs up 5.5%. In the meantime, East Anglia was the weakest performer with annual development of 1.1%.
Nationwide’s most up-to-date knowledge by property sort exhibits that terraced homes have seen the largest proportion rise in costs during the last 12 months, with common costs up 3.6% yr on yr.
Flats noticed an additional slowing in annual value development to 0.3%, from 2.3% final quarter. Semi-detached properties recorded a 3.3% annual improve, whereas indifferent properties noticed a 3.2% year-on-year rise.
Quarterly Regional Home Value Statistics
Areas during the last 12 months
| UK Reality File (Q2 2025) | |
|---|---|
| Quarterly common UK home value | £272,751 |
| Annual proportion change | 2.9% |
| Quarterly change (seasonally adj.) | -0.4% |
| Costliest area | London |
| Least costly area | North |
| Strongest annual value change | N Eire |
| Weakest annual value change | East Anglia |
Trade response:
Jason Tebb, president of OnTheMarket, mentioned: “There’s nonetheless loads of proof of regular exercise within the housing market, regardless of a substantial variety of consumers bringing ahead transactions with a view to make the most of the stamp obligation vacation earlier than it resulted in March. Common home costs are being stored in examine by the rise in inventory, which exceeds provide in some areas.
“Curiosity-rate reductions are extra necessary than ever with a view to increase exercise and momentum out there now that the stamp obligation vacation is now not obtainable. 4 quarter-point base-rate cuts since final August have made all of the distinction to affordability and the flexibility to plan forward with confidence. Additional reductions will give the market added impetus as we head into the latter half of the yr.
“Mortgage lenders proceed to softly trim charges and ease standards, which is additional aiding debtors coping with cussed inflation and the elevated price of dwelling.”
Nathan Emerson, CEO at Propertymark, commented: “Regardless of the very fact we have now witnessed a lot financial turmoil within the first half of the yr, it’s extremely encouraging to see stability throughout the housing market as home value development softened in June. We nonetheless sit in a section of inflation not fairly being the place the Financial institution of England ideally need it to be and we nonetheless have elevated base charges. Nonetheless, it stays encouraging that customers are nonetheless approaching the shopping for and promoting course of with a agency diploma of confidence.
“Throughout the yr so far, we have now seen the typical variety of properties per member department maintain completely regular, and this yr’s quantity characterize a determine that’s virtually 20 per cent larger that the identical interval twelve months earlier.”
Amy Reynolds, head of gross sales at Antony Roberts, mentioned: “Whereas many sellers are decreasing asking costs to draw curiosity, we’re nonetheless agreeing a robust variety of gross sales – and costs are largely holding agency. We’re additionally seeing consumers lose out as a result of they hesitated, anticipating additional value drops, just for another person to return in and safe the property.
“My recommendation to consumers is straightforward: if you happen to like a property, make a proposal. The worst that may occur is it’s rejected. Don’t anticipate the underside of the market – you’ll solely know when it was in hindsight, and if the suitable property isn’t obtainable at that actual second, you gained’t profit anyway.
“In case you discover the suitable residence now, go for it. Deal with it as a spot to dwell, not simply an funding.”
Tom Invoice, head of UK residential analysis at Knight Frank, acknowledged: “The legacy of the March stamp obligation cliff edge is excessive provide and softer demand, which is placing downwards strain on home costs. The excellent news is that charge minimize expectations are rising because of the weaker UK financial outlook. The dangerous information is that the Chancellor has zero monetary headroom to play with, which implies a re-run of 2024 and a sport of ‘guess the tax rise’ forward of the Price range. We predict there shall be modest single-digit home value development by the tip of the yr however if you’re planning to promote over the subsequent few months, asking costs might want to mirror the very fact it is extremely a lot a consumers’ market.”
