UK house prices recorded their steepest monthly fall in over two years in June, according to the latest data from mortgage lender Nationwide. Prices declined by 0.8%, marking the largest drop since February 2023.
While annual growth remained positive at 2.1%, this was the slowest year-on-year increase in nearly 12 months. The downturn appears to reflect cooling demand in the wake of stamp duty threshold changes introduced in April.
Stamp Duty Changes and Market Adjustment
The stamp duty reforms mean that homebuyers in England and Northern Ireland now start paying the tax on properties over £125,000, down from the previous threshold of £250,000. First-time buyers also saw their exemption limit reduced, which has likely dampened enthusiasm, especially in lower to mid-range property brackets.
The reforms prompted a surge in transactions before the deadline, leading to a temporary drop-off in activity afterward - a trend many analysts suggest will be short-lived.
Outlook for the Housing Market
Despite the June dip, forecasters including Nationwide expect activity to rebound in the coming months. Factors supporting the market include:
- Low unemployment
- Earnings continuing to outpace inflation
- Potential interest rate cuts from the Bank of England later this year
Recent increases in mortgage approvals point toward a possible stabilisation or recovery in the second half of the year.
Implications for Businesses
For businesses, the short-term dip in house prices and transaction volumes may signal temporary caution among consumers.
However, the broader economic indicators suggest that this is more of a pause than a downturn.
HMRC have clarified the position on Self Assessment tax return reporting requirements for directors of close companies and updated their guidance for directors of charities.
HMRC have updated guidance on UK VAT refunds for non-UK businesses in a VAT group. Revenue & Customs Brief 10 (2026) explains changes to how non-UK businesses in a VAT group should make future UK VAT refund claims and the transitional arrangements. It also explains how to ask HMRC to reconsider claims made since 1 January 2021 that have been refused.