Free Valuation
Our team of specialists will advise you on the real value of your property. Click here.
UK house prices experienced their sharpest monthly drop in over two years this June, according to mortgage lender Nationwide.
Prices declined by 0.8% over the month—the steepest fall since February 2023. The building society suggested the drop may be linked to weaker demand following April’s changes to stamp duty.
On an annual basis, prices rose by 2.1%, although this marked the slowest year-on-year growth in nearly 12 months.
Despite the dip, Nationwide said it anticipates a rebound in housing market activity in the coming months.
Robert Gardner, Nationwide’s chief economist, said the outlook for many prospective buyers remains relatively strong.
He pointed to a low unemployment rate, wages continuing to outpace inflation, and the possibility of lower borrowing costs if the Bank of England proceeds with further interest rate cuts.
Under the revised stamp duty rules introduced in April, homebuyers in England and Northern Ireland now pay the tax on properties valued over £125,000—down from the previous threshold of £250,000.
First-time buyers are also affected. They must now pay stamp duty on homes priced above £300,000, whereas previously the threshold was £425,000.
Nationwide’s house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales.
Our team of specialists will advise you on the real value of your property. Click here.