UK average property prices fell by 0.4% month-on-month in May to £296,648, a steeper decline than expected, marking the biggest quarterly drop in almost a year. This slowdown is attributed to ongoing economic uncertainty and the absorption of activity following stamp duty increases in April.
UK house prices fall by more than expected amid economic uncertainty
Housing marketHouse pricesBusinessPropertyMoneyReal estateUK
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TL;DR: Key points with love ❤️UK average property prices fell by 0.4% month-on-month in May to £296,648, a steeper decline than expected, marking the biggest quarterly drop in almost a year. This slowdown is attributed to ongoing economic uncertainty and the absorption of activity following stamp duty increases in April.
Trending- 1 June last year: Steepest quarterly fall in house prices since this time.
- 2 July last year: Slowest annual growth rate since this time.
- 3 March: 177,440 house sales reported.
- 4 April: Stamp duty increases in England and Northern Ireland; mortgage approvals fell for a third consecutive month; estimated 64,680 house sales took place.
- 5 May: Average property price fell by 0.4% month on month to £296,648.
- 6 Friday, June 6, 2025: Halifax published figures.
- Steeper than expected fall in UK house prices
- Slowest annual growth rate since July last year
- Decline in mortgage approvals and house sales
- Continued economic uncertainty affecting the property market
What: The average property price in the UK fell by 0.4% month on month in May to £296,648, a steeper fall than the 0.1% decline City economists had expected. This pushed the quarterly change in house prices down 0.3%, the steepest fall since June last year, and slowed the annual rate of growth to 2.5%, the slowest since July last year. Mortgage approvals for new home purchases fell for a third consecutive month in April, and house sales in April were 64% lower than in March.
When: May (latest figures); April (previous month's data, stamp duty increases, mortgage approvals); June last year (steepest quarterly fall since then); July last year (slowest annual growth since then); Friday (Halifax figures published).
Where: UK, England, Northern Ireland, London.
Why: The fall is attributed to ongoing pressure on household finances, a still uncertain economic backdrop, and the market absorbing the rush of activity as buyers tried to complete purchases before stamp duty increases in England and Northern Ireland in April. The outlook depends on the pace of cuts to interest rates, strength of future income growth, and broader inflation trends.
How: Halifax published figures on average property prices. The Bank of England provided data on net residential mortgage approvals. HM Revenue and Customs released figures on house sales.