UK House Prices Drop 0.6% to £278,024 as Iran War Drives Up Borrowing Costs
Updated
Updated · Bloomberg · Jun 5
UK House Prices Drop 0.6% to £278,024 as Iran War Drives Up Borrowing Costs
3 articles · Updated · Bloomberg · Jun 5
Summary
Nationwide said average UK house prices fell 0.6% in May to £278,024, the first decline this year and the sharpest monthly drop in almost a year.
The fall was much steeper than the 0.2% decline economists expected, with the lender pointing to higher borrowing costs after the Iran war strained affordability for prospective buyers.
Annual price growth still held at 1.7%, showing the monthly setback has not yet erased year-on-year gains.
The Nationwide data follows Halifax's report of a 0.1% monthly drop and a third straight decline, reinforcing signs that war-linked rate pressure is cooling the UK housing market.