# Average UK house price dipped by 0.1% in May amid global uncertainty – Halifax

By Susannah Streeter — 2026-06-05

Susannah Streeter, chief investment strategist at Wealth Club, said: “The war-induced energy crunch is taking a toll on the housing market.

“Worries about rising household bills and fears that interest rates will be hiked this year have dampened demand.

“While on an annual basis prices are still up 0.5 per cent, month-on-month they fell 0.1 per cent.

“The shortage of properties in sought-after locations is likely to have kept big pockets of the market more resilient, but the downward trend is evident.

“Hopes are being kept alive about a deal being struck to resolve the Iran conflict, but given the setbacks in recent days, oil prices remain elevated at around $95 a barrel.

“This keeps fanning the fires of inflation and financial markets are pricing in three rate hikes from the Bank of England, with one or two looking likely this year and potentially another increase next spring.

“This is set to keep nerves on edge among homeowners, with affordability stretched to the limit. Potential movers are more likely to sit tight and err on the side of caution before taking on bigger loans.”

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