Nationwide: UK house price growth slows to 1.7% in May

The Nationwide House Price Index is one of the longest-running measures of UK house prices, based on the mortgage lending of Nationwide Building Society. Its reading for May 2026, published on 1 June 2026, showed the slowest annual growth in almost two years.

What did the Nationwide index show in May 2026?

Annual house price growth slowed to 1.7%, down from 3.0% in April. Over the single month of May, prices fell by 0.6%. That monthly fall is the part that matters most: it shows the market losing pace right now, not a year ago.

Why has house price growth slowed?

Three forces are pulling in the same direction. Buyer demand is running around 10% below the same point last year, according to Zoopla's May 2026 index. The number of homes for sale is near an eight-year high, so buyers have more choice and less reason to rush. Mortgage rates have stopped falling, which has held back the borrowing power that drives offers.

More homes and fewer committed buyers means the same thing it always does. The balance of negotiating power moves towards the buyer.

What does a slower market mean if you are selling?

• Price to today's market, not last year's headlines. The home that sells is the one a buyer can see is fairly priced against recent local sales.
• Treat an unusually high valuation with caution. In a softer market, an asking price set too high tends to lead to weeks of silence followed by a price cut.
• Expect to negotiate. With buyers holding more cards, the first offer is a starting point, not an insult.
• Compare valuations before you commit. A single agent's figure is one opinion; two or three give you a range and a reality check.

What does it mean if you are buying?

More choice and less competition is a buyer's market in plain terms. You have room to take your time, to view several homes, and to make an offer below the asking price where the evidence supports it. The average UK home cost around £271,900 in Zoopla's May 2026 reading, but the right number is always the one backed by recent sold prices for similar homes nearby.

What is the Nationwide House Price Index?

The Nationwide House Price Index is a monthly measure of UK house prices produced by Nationwide Building Society from its own mortgage approvals. It is published on the first working day of the month and is one of several indices, alongside Halifax, Zoopla, Rightmove and the official ONS figures, each of which measures a slightly different stage of the buying process.

In a market like this one, the agent who quotes you the highest number is not doing you a favour.

This is exactly the moment where seeing more than one valuation pays off. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, so you can compare what each one thinks your home is worth, and the evidence behind it, on a single screen before you speak to anyone. It is free for sellers and buyers, always.