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

<p>Nationwide finds typical price was £278,024 in May, as Savills says Iran war has ‘fundamentally changed’ outlook</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/jun/01/uk-house-prices-fall-middle-east-interest-rates-manufacturing-softbank-ai-boom-chipmakers-live-updates">Business live – latest updates</a></p></li></ul><p>House 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.</p><p>The price of the average UK home dropped 0.6% in May compared with the month before, according to the lender Nationwide.</p> <a href="https://www.theguardian.com/money/2026/jun/01/uk-house-prices-fall-interest-rates-nationwide-savills-iran-war">Continue reading...</a>