UK house prices fell 0.8% in June, their steepest drop since January 2023, defying expectations of a modest rise. Annual growth also slowed to 2.1%, the weakest since July 2024. Nationwide's chief economist cited April's reversal of stamp duty cuts as a key drag, while others pointed to a flood of properties re-entering the market. Despite this, the backdrop remains supportive: low unemployment, rising real wages, and declining mortgage rates. Markets now price in a 75% chance of a Bank of England rate cut in August, which would ease borrowing costs further and potentially stabilise housing activity. With rate-sensitive sectors in focus, the FTSE 250, home to more domestically exposed stocks, saw mild gains on hopes of monetary easing, though broader market moves remained muted.