House prices in the UK have slumped in the sharpest decline in two years months after Rachel Reeves hiked stamp duty.
They slumped by 0.8% month-on-month in June, making the typical property value £271,619, Nationwide Building Society said.
This month, the annual rate of house growth slowed to 2.1% this month from 3.5% in May.
It comes after the Chancellor elevated stamp duty taxes, an increase which came into effect in April, after a post-pandemic slash on rates.
Robert Gardner, Nationwide’s chief economist, said: “The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April.
“Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive.”
Nationwide said its regional house price figures, which are produced quarterly, indicate that the majority of areas have seen a modest slowdown in annual houseprice growth.
Mr Gardner added: “Northern Ireland remained the strongest performer by a wide margin, though it did see a slowing in annual price growth to 9.7%, from 13.5% in (the first quarter of the year).”
Terraced houses had seen the biggest uplift in prices over the last 12 months, as they had increased 3.6% year-on-year.
However, there was a further slowing the annual price growth of flats to 0.3%, from 2.3% last quarter, Mr Gardner said.
Ms Reeves' budget decreased the rate at which buyers pay stamp duty to £125,000 from £250,000.
First-time buyers currently pay no stamp duty on properties under £300k, with a tax of 5% applied to properties priced between £300,001 to £500,000.
Earlier this month, property website Rightmove said that around one in every 20 homes for sale in Britain is now listed at £1 million-plus.
It recorded a 103% increase in homes at this price point between January and April 2025, compared with the same period in 2019.
Just over 5% of homes for sale across Britain are now priced at a million pounds or more, compared with just under 3% in 2019, Rightmove said.
In London commuter belt locations such as St Albans, Windsor and Maidenhead, Three Rivers, and Waverley, around one in every five homes for sale now have a million-pound price tag.
