UK house prices picked up slightly in June, with prices rising 2.2% year-on-year, up from 1.7% in May, according to the latest Nationwide House Price Index.
Prices were broadly flat on a monthly basis after seasonal adjustment, while the average UK house price (not adjusted) dipped marginally to £277,484 from £278,024 in May.
Nationwide said all UK regions recorded annual price growth in the second quarter of 2026, although performance remained uneven across the country.
Northern Ireland was the best performing region, with annual house price growth of 8.6% in Q2, around four times the UK average.
At the other end of the spectrum, the Outer South East recorded the weakest annual growth at just 0.1%, while East Anglia (0.3%) and the Outer Metropolitan area (0.3%) also saw subdued price rises.
Across the UK, Scotland and Wales both saw annual growth of 3.5%, while London recorded a 1.6% increase.
Robert Gardner (pictured), Nationwide’s chief economist, said the market had softened in recent months amid wider economic uncertainty and higher borrowing costs.
He said: “It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates.
“Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.
“While geopolitical tensions remain high, the signing of a memorandum of understanding between Iran and the US helped push oil prices back towards the levels prevailing before the conflict began.
“If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated.
“In recent weeks a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing.”
Nationwide also highlighted regional divergence in affordability, noting that housing costs in Northern Ireland have risen sharply in recent years, although they remain below the UK average.
The lender said the mortgage payment on a typical first-time buyer property in Northern Ireland now accounts for around 31% of take-home pay, compared with a UK average of 33%.
The report also found that energy efficiency has a limited impact on pricing in the owner-occupied market, with A or B-rated homes attracting a modest 1.6% premium compared with similar D-rated properties.
However, Nationwide said the impact is far stronger in the private rented sector, where higher-rated properties can command a double-digit premium.
The lender added that most homeowners expect energy efficiency to become more important in future buying decisions, although awareness of EPC ratings remains relatively low.
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, said: “On the ground, the picture is more nuanced than national headlines suggest.
“There is real caution at the more rate-dependent end of the market, but a good proportion of buyers are equity-rich or cash, and well-priced family homes in the right roads are still drawing competitive interest.
“There is the familiar pre-summer push from families wanting to be settled before the new school year, but the mood is steady and selective rather than booming or stalling.
“We expect a quieter, price-sensitive summer, with activity firming again in the autumn once buyers have more clarity on rates and the geopolitical noise has died down.”
