Last week, the ONS released its latest House Price Index, showing that the average UK house prices rose by 2.7% in the year to May 2026. Reflecting on the data, and the state of the property and mortgage markets more generally, is Ben Nichols, CEO of RAW Capital Partners…
“This annual house price growth straddles two markedly different six-month periods. The second half of 2025 was defined by a sense of relative calm and stability, with inflation largely under control and interest rates steadily falling.
“In the past six months, by contrast, we have witnessed significant geopolitical and economic uncertainty, which has impacted swap rates and, in turn, the lending market. Throughout it all, the housing market has evidently remained resilient, and though recent volatility has undoubtedly impacted buyer confidence, we are still seeing notable interest in UK residential property from both domestic and overseas investors.
“As ever, the devil is in the detail, and the regional differences within this ONS data are noteworthy. For instance, average property prices in London have fallen by 3.7% since May 2025, while those in the North East have jumped 5.9% in that time.
“In our work with brokers and borrowers, it’s important that lenders recognise these market trends. Ultimately, it underlines why a flexible approach to assessing mortgage applications is so important – as ‘uncertainty’ remains a watchword across the property industry, pragmatism is a vital quality in providing much-needed certainty to those seeking mortgages for themselves or their clients.”
