REVESTO – INDEX
UK Housing Market Update – June 2026
Market Overview
The UK housing market in May 2026 showed mixed signals amid ongoing economic uncertainty. While some indicators point to a slowdown, others suggest resilience in buyer activity.
According to Nationwide, house prices fell by 0.6% in May, bringing annual growth down to 1.7% from 3.0% in April. In contrast, Rightmove reported that the average asking price of properties coming to market rose by 1.2% (+£4,333) in May to £378,304.
Key Highlights
- National Average Asking Price (May 2026): £378,304 (+1.2% MoM)
- Sales agreed remained relatively steady, only 4% below last year's level but 2% higher than 2024.
- Mortgage approvals for new purchases reached a 15-month high in April.
- The average two-year fixed mortgage rate fell to 5.18% from 5.42% last month.
- Clear regional divide: Stronger price growth in the North, while London and the South East experienced declines.
National Average Asking Price by Market Sector (Excluding Inner London)
| Buyer Type | Average Price | MoM Change | YoY Change |
|---|---|---|---|
| First-time buyers | £228,048 | +0.3% | -0.7% |
| Second-steppers | £350,407 | +0.9% | +0.5% |
| Top of the ladder | £704,957 | +2.3% | +0.1% |
Source: Rightmove (May 2026)
Regional Performance
There is a noticeable north-south divide in price growth:
- North East and North West continued to see positive growth (+2.7% and +2.6% respectively).
- London (-2.4%) and the South East (-1.6%) recorded price drops.
- Scotland and parts of the North West showed the strongest annual growth in earlier data.
Mortgage Market
Mortgage approvals rose in April, and the number of remortgage approvals exceeded 50,000 for the second consecutive month. Borrowers appear to be locking in current rates amid uncertainty over future rate movements. The slight drop in average two-year fixed rates to 5.18% has provided modest relief to affordability.
Outlook
While the market has shown resilience in sales activity, higher mortgage rates, cost-of-living pressures, and geopolitical uncertainty continue to weigh on confidence. Annual inflation fell to 2.8% but is expected to rise later in the year. Most forecasts now predict a modest decline in house prices for 2026 (around -2.0%), with the most significant corrections expected in less affordable areas.
New sellers are advised to price realistically from the start, as homes that require price reductions are taking significantly longer to sell.