Last reviewed: 1 June 2026
Nationwide Building Society published its House Price Index for May 2026 on 1 June. The monthly figure showed prices falling by 0.6 percent compared with April, the biggest monthly drop since June 2025 and the first monthly fall of 2026. A Reuters poll of economists had pointed to a 0.2 percent decline. Annual growth slowed sharply to 1.7 percent from 3.0 percent in April. The average UK property price stood at £278,024, down from £278,880 in April.
- Monthly change: -0.6 percent (Nationwide HPI, May 2026)
- Annual change: +1.7 percent (down from +3.0 percent in April)
- Average UK property price: £278,024
- Reuters poll consensus: -0.2 percent (actual was three times worse)
- First monthly decline of 2026; biggest fall since June 2025
- GfK Consumer Confidence Index at lowest level since late 2023 in April
What Nationwide said
Robert Gardner, Nationwide's Chief Economist, attributed the drop to the wider economic uncertainty caused by the Iran conflict, the resulting rise in energy prices, and higher market interest rates that fed through to fixed mortgage pricing in March and April. Consumer confidence weakened sharply over that period: GfK's headline confidence index fell to its lowest level since late 2023 in April and recovered only marginally in May.
How this fits with Halifax and Land Registry
Halifax's most recent index, published on 8 May, showed average house prices edging down by 0.1 percent in April to £299,313, with annual growth of 0.4 percent. The Halifax measure tends to run higher than Nationwide because it covers a different sample of mortgage approvals. The Land Registry UK House Price Index, which uses completed sales and runs on a two-month lag, also showed monthly falls across most English regions in the data to March 2026.
What is driving demand lower
The average two-year fixed mortgage rate sits around 5.74 percent and the average five-year fix around 5.67 percent as of late May. That is well above the rates available before the Iran conflict began. Some lenders have started to ease pricing as swap rates have stabilised, but affordability remains the binding constraint for many buyers. Nationwide and Halifax both expect modest price growth of around 2 to 4 percent over 2026 as a whole, conditional on rate movements.
What this means for buyers and sellers
For buyers, the May data shows the market shifting back in their favour at the margin. Mortgage offers typically remain valid for three to six months, and a small number of sub-4 percent fixes are still available for borrowers with the largest deposits. For sellers, the data suggests asking-price discipline matters: properties priced above the local market are sitting longer. Estate agents report wider gaps between asking and agreed prices in May than in the early months of the year.
What to watch next
The next Halifax release covers May 2026 data and is due on 5 June. The Land Registry UK House Price Index for April 2026 is published on 18 June, the same day as the Bank of England's next interest rate decision. Mortgage approval data from the Bank of England, published monthly, will indicate whether buyer demand stabilises through the summer.
FAQs
Are UK house prices falling now?
The Nationwide index showed a 0.6 percent monthly fall in May 2026, the first decline of the year. Annual growth slowed to 1.7 percent. The Halifax index showed a 0.1 percent monthly fall in April. The trend is one of cooling momentum rather than a sharp correction.
How much is the average UK house?
Nationwide put the figure at £278,024 in May 2026. Halifax's April figure was £299,313. The Land Registry UK House Price Index for March 2026 put the England average at £290,000.
Will prices keep falling in 2026?
Nationwide and Halifax both expect modest annual growth of 2 to 4 percent over the year as a whole. The path depends on mortgage rate movements and the duration of the Iran conflict.
Should I delay buying?
Timing the market precisely is rarely possible. Affordability over the life of the loan matters more than monthly price movements. Anyone in advanced negotiations on a property should focus on whether the agreed price reflects local comparable sales.
