Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
UK Housing Market Remains Resilient Amid Economic Uncertainty
UK house prices and rents have remained relatively resilient across much of the housing market, despite ongoing economic uncertainty. Recent data shows that transaction levels have held up well, supported by a 14% increase in the number of homes available for sale, which has given buyers more choice and helped keep the market moving.
According to The Negotiator, inflation has remained below 3% and mortgage rates are currently falling. However, utility bills are set to rise by 13.5% due to the energy price cap increase from 1 July 2026, which is expected to impact inflation rates later in the year. Forecasts suggest that inflation could peak at around 4% in November 2026, with different scenarios for how quickly it may fall after that.
Bank of England base rate predictions remain uncertain, with some analysis suggesting rates could rise to just over 4%, while others believe rates may not move until inflation falls further. In the meantime, the property market has shown resilience, although flats and the prime market continue to face greater challenges.
Latest Market Indices
- Rightmove reports that house prices dropped by 0.6% in June, the largest June fall in fourteen years, bringing the average price to £376,191. The average two-year fixed mortgage rate has dropped to 5.07% from 5.18% last month, reducing the average monthly mortgage payment by around £30.
- Nationwide states that UK annual house price growth slowed to 1.7% in May, down from 3.0% in April, with a 0.6% month-on-month decrease.
- Halifax notes that house prices edged down by 0.1% in May, following a similar fall in April, with the average property price now at £298,800.
The report highlights that every local market is different, so prices, demand, and the likelihood of achieving a sale will vary by area and property type. For letting agents and inventory clerks, the increased number of homes on the market and the resilience of rents and prices are key trends to monitor in the coming months.
Source: The Negotiator