House prices cool — a window for buyers

Prices cool, and buyers get room

Nationwide’s May figures show annual house price growth has slowed to 1.7% — down sharply from 3.0% in April. Prices dipped 0.6% over the month, leaving the average UK home at £278,024.

With the Bank of England holding rates and lenders trimming deals, buyers face less competition and a little more room to negotiate. After a turbulent spring, the market feels calmer.

Rates ease as the Bank holds steady

Lenders are trimming fixed deals after a turbulent spring. The average five-year fix has eased to 5.63%, down from 5.75% earlier in the year, while the average two-year fix has fallen further — to 5.68% from 5.84% in April — as competition picks up.

The Bank of England held the base rate at 3.75% in an 8–1 vote, unchanged since December 2025, while CPI inflation eased to 2.8% from 3.3%. The next decision lands on 18 June, so it’s a smart moment to review where you stand.

First-time buyers get a lift

There’s encouraging news if you’re buying your first home. After the regulator relaxed its cap on high loan-to-income lending, Nationwide now lends up to 6× income to eligible first-time buyers — and has lowered the income threshold for those buying on their own.

In practice, that can mean a meaningfully larger loan for buyers who qualify. If you’ve felt priced out, it’s worth checking what you could now borrow — the numbers may have moved in your favour.

What this means for you

A cooler market, easing fixed rates and more generous first-time-buyer lending all point the same way: there’s a genuine opening right now, whether you’re buying, moving or remortgaging.