1st June 2026
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, comments on latest data from the Nationwide House Price Index (HPI).
“The latest analysis from Nationwide reveals a rise in house prices of almost £5,000 year-on-year (1.7%), but a dip month-on-month of almost £900 (-0.6%).
“Affordability remains a key issue for would-be buyers. Not only have house prices risen by almost £14,000 over the past two years alone, but higher mortgage rates, inflationary pressures and a lack of affordable housing create a challenging environment. Due to an unsettled outlook, borrowers are more hesitant to make big financial decisions, as shown in weaker new buyer enquiries, revealed by RICS. Buyers who can afford a mortgage, though, will have bargaining power on their side.
“Consumer confidence has already taken a hit from global pressures, as the intent to make ‘major purchases’ has fallen to its lowest level in over a year, according to GfK. It would be incredibly optimistic to expect this to improve over the next few months, with the cost of living projected to rise, and the conflict in the Middle East now three months in.
“Lenders continue to reprice their offers in reaction to volatile swap rates, with two- and five-year swaps trending at 30-day lows. This typically creates a more tolerant lean towards making further rate cuts than rises. Last week, more than a dozen lenders moved to cut fixed rate mortgages, and the big lenders who have yet to catch up could well show their cards in the next few days.
“It will be vital to keep momentum in the mortgage market at a time when fears over the rise in the cost of living continue to weigh overhead. Relaxing loan-to-income rules to allow buyers to secure their dream home, such as with Nationwide’s Helping Hand mortgage, supports first-time buyers who remain the lifeblood of the market.
“Those looking to get a mortgage of £250,000 are looking at repayments of £1,562 per month, based on a typical two-year fixed mortgage of 5.68%, with a term of 25 years. This is a £1,000 difference over the course of 12 months, compared to the average rate of 5.12% back in June 2025.”
https://www.nationwide.co.uk/media/hpi/reports/annual-house-price-growth-slows-in-may-1