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UK house prices fall for first time this year amid rising interest rates
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UK house prices fall for first time this year amid rising interest rates

The Guardian · Jun 1, 2026, 7:00 AM · Also reported by 4 other sources

Key takeaways

  • Mortgage interest rates have broadly risen across the market in recent months.
  • Prefer the Guardian on GoogleHouse prices fell in the UK for the first time this year in May, as rising interest rates triggered by the war in Iran hurt homebuyer demand.
  • The price of the average UK home dropped 0.6% in May compared with the month before, according to the lender Nationwide.

Why this matters: a developing story that could shape the day's news cycle.

Houses in Lewes. Mortgage interest rates have broadly risen across the market in recent months. Photograph: Graham Prentice/Alamy View image in fullscreen Houses in Lewes. Mortgage interest rates have broadly risen across the market in recent months. Photograph: Graham Prentice/Alamy House prices UK house prices fall for first time this year amid rising interest rates Nationwide finds typical price was £278,024 in May, as Savills says Iran war has ‘fundamentally changed’ outlook

Prefer the Guardian on GoogleHouse prices fell in the UK for the first time this year in May, as rising interest rates triggered by the war in Iran hurt homebuyer demand.

The price of the average UK home dropped 0.6% in May compared with the month before, according to the lender Nationwide.

Article preview — originally published by The Guardian. Full story at the source.
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