UK Average House Price Falls 0.1 Percent in May

The average UK house price fell 0.1 percent month-on-month in May to £298,806, Halifax reported. The figure marks a 0.5 percent rise compared with May 2025. Property prices continued to reflect uncertainty tied to developments in the Middle East, the bank said.

Recent mortgage-rate cuts have been offset by higher inflation expectations, keeping borrowing costs above January levels and stretching affordability for many buyers.

Prices varied across regions.

Northern Ireland recorded the largest annual gain at 7.8 percent, while London posted the steepest annual decline at 1.5 percent.

Transaction levels have remained relatively stable, Halifax said. Mortgage brokers and property professionals noted that committed buyers continue to transact while remaining selective on price. Borrowing costs and consumer confidence are expected to shape activity in the coming months, with house prices projected to stay broadly stable while interest rates remain elevated, the bank added.