House prices in the United Kingdom fell sharply in June, marking the steepest monthly decline in over a year and a half, according to new data released by mortgage lender
Nationwide on Tuesday.
The average price of a home across the country dropped by 0.8% compared to the previous month. This unexpected fall surpassed market expectations and represents the biggest monthly decrease since November 2022.
The drop caught many analysts off guard. Economists surveyed by Reuters had predicted a modest increase of 0.2% for the month, making the actual figures significantly worse than anticipated.
One of the key factors behind the decline appears to be the expiration of a temporary discount on property transactions, which had been helping to prop up market activity earlier in the year. With that incentive no longer available, buyer demand appears to have cooled, contributing to downward pressure on prices.
The housing market had shown some signs of resilience earlier in the year despite higher mortgage rates and ongoing economic uncertainty. However, this latest data suggests that those challenges may be taking a greater toll than previously thought.
Nationwide’s figures are closely watched as an indicator of housing market trends across the UK. The June drop could potentially signal a period of weaker price growth — or even further declines — if affordability constraints and economic headwinds persist.
More detailed data and regional breakdowns are expected to follow, which may shed further light on how widespread the downturn is across different parts of the country.