UK Nationwide reports July house price growth slows to 1.8%

Nationwide Building Society’s July 2026 House Price Index showed annual growth falling to 1.8%, down from 2.2% in June, while month‑on‑month prices rose 0.1% to £277,542. The Bank of England kept its base rate at 3.75% as mortgage rates continued to climb, reflecting heightened borrowing costs linked to geopolitical tensions, notably the Iran‑US conflict.

Chief economist Robert Gardner described the market as “soft” and said activity remains muted amid uncertainty. Property experts warned the market is “crying out for some kind of incentive” and urged new Prime Minister Andy Burnham to consider measures to stimulate demand. Mortgage lending stayed resilient, with net borrowing of £7.7 billion in June and approvals rising to 58,200, but fewer enquiries and high stock levels keep buyers cautious.

The data underscores a broader slowdown in the UK housing market, with regional variations and speculation about future policy changes, including possible property tax reforms under the new government.