In the country, the largest monthly decline in home prices in more than two years is occurring

According to Nationwide, house prices in the United Kingdom fell by 08 percent in June

We disclose the regions that perform the best and the worst.

The largest monthly drop in UK home prices since February 2023 occurred in June, when they dropped by 0.8 percent.

The annual rate of increase in home prices slowed to 2 percent last month from 3 percent in May, according to Nationwide.

"The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April," stated Robert Gardner, chief economist for the Building Society, but he was hopeful that activity would pick up as the summer went on.

According to Nationwide, the average cost of a house in the UK is currently 271,619.

Zoopla, a real estate portal, recently reported that, despite a 6% increase in the number of properties for sale over the previous 12 months, house price growth slowed to 1 percent in May from 1 percent in April.

The average UK property, meanwhile, is valued at 265,000 by the Office for National Statistics. The annual growth rate of home prices was cut in half last month, with prices increasing by only 3 to 5% in the year ending in April.

"It is evident that the recent declines in employment, the slowdown in income growth, and the increase in stamp duty on April 1st have taken some of the energy out of the housing market," says Paul Dales, chief UK economist at the consulting firm Capital Economics.

Mark Harris, CEO of SPF Private Clients, a mortgage broker, argues that "moderating house price growth is good news for the wider health of the housing market, making home ownership more realistic for first-time buyers, many of whom are already relying on the Bank of Mum and Dad..."

We examine how home prices may change this summer and examine the nationwide data that reveals the UK's top and bottom performing regions.

What is the future of home prices in the UK?

This summer, the housing market will rebound, according to Gardener at Nationwide.

Although there are still economic uncertainties in the global economy, he says, "we still expect activity to pick up as the summer progresses, since underlying conditions for potential homebuyers in the UK remain supportive."

"The unemployment rate is still low, real earnings growth is healthy, household balance sheets are solid, and borrowing costs should slightly decrease if the bank rate is further lowered in the upcoming quarters, as we and the majority of analysts anticipate.

"Signs of life returning to the mortgage market" are noted by Rosie Hooper, a chartered financial planner at Quilter Cheviot.

She says: "Gross lending increased to 20.4 billion, the highest level since January, while net borrowing of mortgage debt increased by 2.1 billion in May after a steep decline in April. For the first time this year, mortgage approvals for home purchases also increased, reaching 63,000.

Although the market is still adjusting to the stamp duty reforms implemented in April, their immediate effects will eventually fade as they become the norm. Both first-time purchasers and movers are already starting to get used to the new thresholds, which should help keep things stable in the months ahead.

The head of Knight Frank's UK residential research, Tom Bill, says there are both positive and negative news regarding home prices.

"The good news is that the deteriorating UK economic outlook is raising expectations for interest rate cuts. The bad news is that there is no financial flexibility left for the chancellor, so 2024 will have to be rerun and the tax increase will have to be predicted before the budget is released.

"Modest single-digit house price growth by the end of the year" is what he anticipates.

By the end of 2025, home prices may increase by 3 to 5 percent annually, according to Capital Economics.

In terms of home prices, which regions in the UK are doing the best and worst?

When discussing average UK home prices, a variety of regional variances are obscured.

According to Nationwide, Northern Ireland continued to be the best-performing region in the second quarter of 2025, with an annual increase in home prices of 9.7 percent. The annual rate was 13.5 percent in the first quarter, so this did indicate a decline.

Wales saw a 2 point 6 percent increase, while Scotland saw a 4 point 5 percent increase. Prices increased 2 to 5 percent year over year throughout England, which was a slight slowdown from the 3 to 3 percent annual increase observed in the previous quarter.

The Building Society notes that "the north-south divide in house price performance narrowed during the quarter" with regard to English regions.

Southern England (South West, Outer South East, Outer Metropolitan, London, and East Anglia) saw a 2.2 percent increase in average prices, while Northern England (which includes the North, North West, Yorkshire and The Humber, East Midlands, and West Midlands) saw a 3.1 percent increase.

With prices up 5 to 5%, the North was England's best-performing region. East Anglia, meanwhile, did the worst, growing by 1.1 percent annually.

At 532,449, London has the highest average house price, which is not surprising. The least expensive is in the North, at 167,259.

Additionally, Nationwide discovered that the annual price growth for apartments further slowed to 0.3 percent from 2.3 percent in the previous quarter. On the other hand, detached properties experienced a 3point 2 percent year-over-year increase, while semi-detached properties saw a 3point 3 percent annual increase.