UK house prices fell in May, recording their first monthly decline of the year, according to the latest figures from Nationwide Building Society.
The average property value dropped by 0.6% month-on-month after seasonal adjustments. This is the first fall since December 2025, when prices slipped by 0.3%.
Annual growth also slowed sharply. House prices were 1.7% higher than a year earlier in May, down from an annual growth of 3.0% in April.
Nationwide said the average UK house price stood at £278,024 in May.
Robert Gardner, Nationwide’s chief economist, said the fall was not unexpected given the wider economic backdrop. He pointed to uncertainty caused by developments in the Middle East, which have contributed to higher energy prices and rising market interest rates.
Gardner said there had been some positive economic news, but warned that growth is likely to be weaker than previously expected this year, while inflation could remain higher. He added that the overall impact would depend on how long the disruption lasts and how policymakers respond.
Despite the slowdown, Gardner said the UK economy and housing market had shown strong resilience in recent years. He also noted that household finances remain relatively stable. Total household debt is at its lowest level relative to income in around 20 years, while many households have built up savings buffers.
However, he added that these savings are not evenly spread across the population, meaning some households remain more exposed to higher living costs and borrowing pressures.
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