House prices rose by 0.5% month on month in May 2025 having fallen by 0.6% in April according to Nationwide’s latest house price index.

The annual rate of house price growth increased marginally in May to 3.5%, compared to 3.4% in April.

Robert Gardner, Nationwide's Chief Economist, said: “Official data confirmed that there was a significant jump in residential property transactions in March, with buyers bringing forward their purchases to avoid additional stamp duty costs. Owner occupier house purchase completions were around twice as high as usual and the highest since June 2021 (which was also impacted by stamp duty changes).

“Nevertheless, mortgage approvals data suggests that market activity appears to be holding up well following the end of the stamp duty holiday. Despite wider economic uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.”

Houses in predominantly rural areas having risen by 23% over the last five years, compared to 18% in more urban areas.

Gardner said: “Our recent special report identified that average house price growth in predominantly rural locations has continued to outpace more urban areas.  Between December 2019 and December 2024, house prices in predominantly rural areas increased by 23%, compared with 18% in areas that are largely urban.

“The pandemic had a significant impact on housing demand during 2021 and 2022, with a shift in preferences towards more rural areas, particularly amongst older age groups. Whilst these effects have now faded, less urban areas have continued to hold the edge in terms of house price growth.”