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Market pulse: mortgage rates edge down, prices near-flat, and the most homes for sale since 2015

Week ending 11 June 2026 · published 11 June 2026

The two big lender indices published their May readings this month, and both point the same way: a market treading water. Halifax put the average UK home at £298,806 in May — down 0.1% on the month and up just 0.5% on the year — while Nationwide recorded a 0.6% monthly fall and +1.7% annual growth. The gap between the two annual readings is worth noting: they use different mortgage books and mix-adjustments, and the official UK House Price Index (which is based on completed Land Registry transactions, and runs about two months behind) had annual growth at exactly 0.0% in its latest March reading.

Mortgage rates and the Bank

The average 2-year fixed mortgage rate eased to 5.18% in May, down from 5.42% a month earlier, according to Rightmove's mortgage tracker. Bank Rate itself remains at 3.75%, held at the April decision — the next Monetary Policy Committee announcement is due on 18 June. Halifax's head of mortgages, Amanda Bryden, summed up the tension: despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above where they started the year, continuing to stretch affordability and temper demand.

The most choice for buyers in a decade

Rightmove's May report found the stock of homes for sale at its highest level for the time of year since 2015 — and almost a third of existing listings have taken a price reduction. The penalty for over-pricing is stark in the data: homes that didn't need a reduction found a buyer in 36 days on average, against 127 days for those that did.

First-time buyers

First-time buyer prices are moving more slowly than the wider market. Halifax measured FTB annual growth at +0.3% in May (versus +0.5% overall), and Rightmove put the typical first-time buyer home at £228,048 — still 0.7% cheaper than a year ago. Lenders are leaning in: Halifax points to more flexible affordability checks and a growing range of low-deposit products.

Renting

The average UK private rent reached £1,381 a month in the year to April, up 3.5% annually, per the ONS. Within England the North East is rising fastest (+6.5%) and London slowest (+2.0%); Wales (+4.9%) is outpacing Scotland (+2.0%).

Policy corner

Two items from the week: the government stepped up its New Towns push, publicly challenging Enfield Council's refusal to support the proposed Crews Hill and Chase Park development as mayors gain new planning-intervention powers under the English Devolution and Community Empowerment Act; and the Regulator of Social Housing finalised the electrical-safety Tenant Satisfaction Measure, completing the six-measure building-safety reporting suite for England's large social landlords from 2026/27.

The next official UK House Price Index release — the April data — is due Wednesday 17 June, and our full monthly market report will follow it.

Sources

We report what the data shows — no forecasts, no investment advice. For local detail, see house prices by area and the monthly market report.