Annual house prices rose 2.2% in June, up from 1.7% in May, according to Nationwide’s latest index. The average UK home now sits at £277,484, with every region recording positive annual growth in the second quarter.
Northern Ireland led the charge with prices up 8.6% year on year. Scotland and Wales both registered 3.5% gains, while London posted a 1.6% increase.
The monthly picture told a different story. Prices edged down fractionally from £278,024 in May, marking a second consecutive month without monthly growth. Economists had pencilled in a small 0.1% rise. But the annual trajectory remains firmly upward, and it’s the annual figures that tend to matter most to homeowners considering their next move.
Perhaps the most significant development for the market isn’t in the house price data at all. It’s in the oil markets.
Brent crude stood at $73 a barrel on Wednesday, down sharply from a peak above $120 earlier this year. That collapse in energy costs has direct implications for inflation, interest rate expectations, and ultimately, mortgage pricing.
Robert Gardner, Nationwide’s chief economist, didn’t mince words: “If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated.” He pointed to the fact that UK inflation has been lower than expected in recent months, reinforcing the case for restraint from the central bank.
In recent weeks, a shift in market expectations for the future path of Bank Rate has already helped bring down the market interest rates that underpin fixed-rate mortgage pricing.
The average two-year fixed mortgage rate was 5.53% on Tuesday, according to Moneyfacts. That’s up from 4.83% at the start of March, when the geopolitical disruption began pushing borrowing costs higher. Five-year fixes sit at the same level, up from 4.95%.
Those numbers are still elevated. But the direction of travel matters. With oil back at pre-conflict levels, the pressure on the Bank of England to tighten further has eased considerably. Fixed-rate mortgage pricing tends to anticipate these shifts before they arrive in official policy.
For buyers in Norwich, Wymondham, or King’s Lynn, this could translate into meaningfully better deals before the autumn.
HMRC data released alongside the Nationwide figures showed 98,450 seasonally adjusted residential transactions completed in May. That was a 2% dip from April’s 100,440, following a 3% fall the previous month.
Anthony Codling, managing director of equity research at RBC Capital Markets, offered useful context: “May’s 98,450 seasonally adjusted housing transactions sit bang on the five-year average and just shy of the ten-year average. A business-as-usual market and, frankly, that’s not the worst place to be.”
Non-seasonally adjusted figures actually increased 7% month on month, and completions were 17% higher than May 2025, a period distorted by the ending of a stamp duty threshold.
Nathan Emerson, chief executive of Propertymark, noted that member agents are reporting well-priced homes continuing to attract strong interest, “particularly where there is a good choice of stock available.”
Gareth Lewis, deputy chief executive of MT Finance, observed that buyers are “prepared to negotiate hard on price.” That’s a characteristic of a market where informed buyers are making calculated moves rather than sitting on the sidelines.
Jason Tebb, president of OnTheMarket, described it as “a strong buyer’s market” where those ready to act “are finding they are in a compelling position.”
For sellers across Norfolk and Suffolk, pricing accurately from the outset has never been more important. The Ivybridge Collection’s 324 local property market reports provide granular data on pricing trends at postcode level, helping sellers and their agents position properties where genuine demand exists.
The national average can obscure significant regional variation. Nationwide’s quarterly breakdown revealed annual growth ranging from 1.6% in London to 8.6% in Northern Ireland. The East of England, which includes Norfolk and Suffolk, has consistently tracked above the London figure over recent quarters.
That regional resilience reflects structural demand. Norfolk’s combination of lifestyle appeal, relative affordability compared to the South East, and improving infrastructure continues to draw buyers relocating from London and the Home Counties. Villages around Holt, Burnham Market, and the Southwold coast remain among the most sought-after locations in eastern England.
The autumn could bring a shift in momentum. Amy Reynolds, head of sales at London agency Antony Roberts, expects “a quieter, price-sensitive summer, with activity firming again in the autumn once buyers have more clarity on rates and the geopolitical noise has died down.”
The ingredients for that firming are largely in place. Oil prices have normalised. Inflation is trending lower. And the Bank of England, while cautious, hasn’t raised rates despite market fears. If swap rates continue their recent decline, lenders will follow with more competitive fixed-rate products.
For Norfolk and Suffolk homeowners, the annual picture remains positive. Prices are rising, demand is genuine, and the forces that pushed borrowing costs higher are receding. The next few months will reward those who move with confidence and the right market intelligence behind them.
