UK Property Market Pulse – June 2026
Monthly UK property market data covering May 2026 figures. The BoE cut rates to 4.25%, house prices rose steadily and mortgage approvals climbed to their highest level since mid-2024.
Headline
The Bank of England cut the base rate by 25 basis points to 4.25% in June, providing a significant boost to buyer sentiment. Halifax reported the average house price at £301,500, up 3.5% year-on-year. Nationwide's measure showed £274,200, up 3.1% annually. Mortgage approvals rose to 67,800, reflecting growing confidence in the market.
Data Table
| Metric | May 2026 | MoM | YoY | Source |
|---|---|---|---|---|
| UK average house price (Halifax) | £301,500 | +0.4% | +3.5% | Halifax |
| UK average house price (Nationwide) | £274,200 | +0.3% | +3.1% | Nationwide |
| BoE base rate | 4.25% | -0.25pp | -0.50pp | Bank of England |
| Average 2-year fixed mortgage rate | 4.72% | -0.10pp | -0.80pp | Moneyfacts |
| Average 5-year fixed mortgage rate | 4.48% | -0.10pp | -0.64pp | Moneyfacts |
| Monthly mortgage approvals | 67,800 | +3.0% | +10.8% | Bank of England |
3 Key Market Signals
1) BoE rate cut delivers confidence boost
The 25bp cut to 4.25% was the first reduction since late 2025 and signals the MPC's growing confidence that inflation is on a sustainable downward path. Markets now price a further cut to 4.00% by August or September, which would take the base rate to its lowest level since early 2023.
2) Mortgage rates falling ahead of further easing
Average 2-year fixed rates dropped to 4.72% and 5-year fixes to 4.48%. Swap rates have declined further, suggesting lenders will continue to reprice downward. Best-buy 5-year fixes for borrowers with 40%+ equity are now available below 3.90%.
3) Regional divergence narrowing slightly
London and the South East saw improved annual growth at 1.8–2.2%, narrowing the gap with northern regions running at 3.5–5.0%. The rate cut is expected to benefit higher-value southern markets more, as buyers in these areas are more sensitive to mortgage rate changes.
Regional Breakdown
| Region | Average Price | YoY Change |
|---|---|---|
| London | £540,000 | +1.8% |
| South East | £389,000 | +2.2% |
| South West | £324,000 | +2.8% |
| East of England | £354,000 | +2.5% |
| West Midlands | £259,000 | +3.8% |
| East Midlands | £244,000 | +4.0% |
| North West | £229,000 | +4.5% |
| Yorkshire & Humber | £214,000 | +4.3% |
| North East | £199,000 | +5.0% |
| Scotland | £209,000 | +3.9% |
| Wales | £219,000 | +3.4% |
| Northern Ireland | £189,000 | +5.5% |
Outlook
The June rate cut has shifted market expectations. Swap rates suggest a further cut to 4.00% is likely by August, which would bring mortgage rates closer to the 4% mark on standard products. The summer market is expected to be more active than 2025, with improved affordability drawing first-time buyers back. The consensus full-year forecast has edged up to 3–5% annual house price growth.
Published: 2 June 2026 | By PropertyWiki Team
PropertyWiki publishes monthly UK property market data using Halifax, Nationwide, BoE and Moneyfacts data. This bulletin is for informational purposes only and does not constitute investment advice.