UK House Prices Fall 0.4% May Amid Slowing Growth

UK house prices saw a slight decline of 0.4% from April to May 2025, with the average price falling to £296,648, reflecting a largely stable housing market amid affordability challenges and steady wage growth. Experts indicate the market remains stable but awaits further interest rate cuts to stimulate activity, as higher taxes and costs cause buyers to hesitate. In the US, mortgage rates experienced a modest drop, with the 30-year fixed rate decreasing to 6.85%, signaling a narrow range of rates throughout 2025 and some recovery in housing inventories. This rate decline is linked to falling Treasury yields and concerns about a weakening economy, fueling speculation of a Federal Reserve rate cut later in the year. Meanwhile, the UK construction sector showed signs of easing its downturn in May, with the slowest reduction in output volumes since January and improved business activity expectations driven by hopes for a housing market turnaround and increased infrastructure work. Despite ongoing cost pressures, the sector anticipates potential growth, balanced against economic uncertainties and cautious client spending.