The UK Nationwide House Price Index rose by 3.5% year-on-year in May 2025, following a 3.4% increase in April and above market expectations of a 2.9% rise. On a monthly basis, prices grew by 0.5%, rebounding from a 0.6% decline in April and exceeding forecasts of a 0.1% gain. Nationwide’s Chief Economist, Robert Gardner, noted that official data showed a surge in residential transactions in March, as buyers rushed to avoid higher stamp duty. Owner-occupier completions doubled and hit their highest level since June 2021. Nevertheless, mortgage approval data indicates market activity has remained resilient following the end of the stamp duty holiday. Despite global economic uncertainty, conditions for UK homebuyers remain favourable, supported by low unemployment, solid real wage growth, strong household finances, and the potential for lower borrowing costs if the Bank Rate is cut as expected.