House prices cool: a window for buyers

Prices cool, and buyers get room

Annual house price growth slowed to 1.7% in May, according to Nationwide, down from 3.0% in April. Prices also fell 0.6% over the month, which puts the average UK home at £278,024.

The Bank of England is holding rates and lenders are trimming their deals. That leaves buyers with less competition and a bit more room to negotiate. After a busy, unsettled spring, the market feels calmer.

Rates ease as the Bank holds steady

Lenders have been cutting their fixed deals as competition picks up. The average five-year fix has eased to 5.63%, down from 5.75% earlier in the year. The average two-year fix has dropped further still, to 5.68% from 5.84% in April.

The Bank of England kept the base rate (the rate that shapes the cost of borrowing across the market) at 3.75%, voting 8 to 1 to hold. It has stayed there since December 2025. CPI inflation, meanwhile, eased to 2.8% from 3.3%. The next decision is due on 18 June, so this is a sensible moment to review where you stand.

First-time buyers get a lift

If you are buying your first home, there is some welcome news. The regulator has relaxed its cap on high loan-to-income lending (mortgages that are large compared with what you earn), and Nationwide now lends up to 6× income to eligible first-time buyers. It has also lowered the income threshold for people buying on their own.

For buyers who qualify, that can mean a noticeably bigger loan. If you have felt priced out, it is worth seeing what you could borrow now with our borrowing calculator, as the figures may have shifted in your favour. Our first-time buyer mortgage advice can take you through the rest.

What this means for you

A cooler market, easing fixed rates and more generous first-time buyer lending all point the same way. There is more on the table right now, whether you are buying your first home, moving up the ladder, or remortgaging as a fixed deal comes to an end. A Clearview adviser can look at your numbers and tell you where you stand.