Annual house price growth across the UK picked up slightly in June, reaching 2.2% compared to 1.7% in May, according to the latest figures from Nationwide. Despite this uptick in the annual rate, prices remained largely flat month-on-month after accounting for seasonal variations, suggesting a cautious market environment.
The data from Nationwide's June House Price Index, which also includes regional trends for the second quarter (Q2) of 2026, highlights significant disparities across the country. Northern Ireland emerged as the standout performer, recording an impressive 8.6% annual price increase in Q2. This strong growth significantly outpaces the UK average and reflects a trend seen in border regions of Ireland, where affordability has started to deteriorate as a result.
In contrast, the Outer South East proved to be the weakest performing region, with a modest annual rise of just 0.1% in Q2. Across England, annual price growth accelerated to 1.5% from 0.9% in Q1. Northern England, encompassing regions like the North West, Yorkshire & The Humber, and the Midlands, saw average prices rise by 3.1% year-on-year, with the North West leading this group at 3.9%.
Southern England, including areas such as the South West, Outer South East, Outer Metropolitan, London, and East Anglia, experienced broadly stable average growth of 0.7%. London, despite its reputation, recorded a modest 1.6% annual price rise, while the surrounding Outer Metropolitan and Outer South East regions saw even smaller increases of 0.3% and 0.1% respectively. Scotland and Wales both saw a slight increase in annual house price growth in Q2, reaching 3.5%.
Robert Gardner, Nationwide’s Chief Economist, noted that the market has softened in recent months, attributing this to uncertainty stemming from developments in the Middle East, rising energy prices, and higher market interest rates. Consumer confidence and housing sentiment have weakened, and mortgage approvals in May saw a noticeable decline. However, a recent shift in market expectations regarding the Bank of England's future interest rate path has helped to bring down market interest rates underpinning fixed-rate mortgage pricing. If sustained, these trends could help restore household confidence and ease affordability pressures, potentially paving the way for a recovery in housing market activity in the coming quarters, provided domestic political uncertainty does not negatively impact sentiment.
For first-time buyers in Northern Ireland, the strong growth has led to a notable change in affordability. A mortgage payment on a typical first-time buyer property now equates to 31% of an average earner's take-home pay, up from 24% in Q2 2022. While this is still below the UK average of 33%, the price of a typical home in Northern Ireland is now around 80% of the average UK price, an increase from 70% in Q1 2024, though still well below its 2007 peak of 125%.
Source: Nationwide