UK house price growth remained steady month-on-month in June, following a slight dip in May, according to an index by Halifax. The bank recorded a 0.0% month-on-month change in typical UK property values in June, after a 0.3% decrease in May.
Halifax highlighted the housing market’s resilience, which “continues to stand out” following stamp duty changes implemented in April. The changes resulted in less generous discounts on the charge, applicable in England and Northern Ireland, for some home buyers. Amanda Bryden, head of mortgages at Halifax, said: “The UK housing market remained steady in June, with the average property price effectively unchanged over the month, following a slight drop of 0.3% in May. At £296,665, the average house price is still around 2.5% higher than this time last year.
“The market’s resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.
“Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments.”
Ms Bryden said that over the past two months: “We’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.”
She added: “With markets pricing in two more rate cuts from the Bank of England by year-end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year.”
Tom Bill, head of UK residential research at Knight Frank, provided a more cautious perspective: “House prices may have held steady, but high supply and weak demand suggest this is not the start of a rebound.”
“Supply is higher following the stamp duty cliff-edge in March and as more landlords sell, but consumer confidence remains weak after economic activity was pulled forward into the first quarter of the year.”
Mr Bill added that modest single-digit house price growth in 2025 is expected, as rates come down in the second half of the year, but asking prices “need to reflect the fact it is very much a buyer’s market.”
Nationwide Building Society’s recent report indicated that the average house price dipped by 0.8% month-on-month in June.
Karen Noye, a mortgage expert at wealth manager Quilter, said: “Today’s house price index looks a little more positive than other indices already published, which reported a fall in prices.”
She also mentioned seasonal market changes: “With the summer holidays fast approaching, we could see a slowdown as trips abroad take precedence over moving home.
“The market is accustomed to a dip in momentum during this time of year, but having already had a fairly slow start to 2025, we could see this lull push house prices down a tad more. However, while we may not see activity pick up until nearer the autumn – by that time the stamp duty changes will have sunk in – buyers will have no choice but to adjust to the new norm if they wish to move home, and we could see the market pick up some pace as a result.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “A major problem is that homes have become so pricey that it’s pushing affordability to the limit. While mortgage rates have fallen, they’re not dropping particularly quickly and remain much higher than we have been accustomed to in the previous few years.
“It’s one reason why property sales are stronger in parts of the country where prices tend to be lower. Lenders have reacted to higher house prices by offering more flexibility over how much people can borrow.”
Ms Coles suggested for first-time buyers: “It’s worth considering whether you can get any help building your deposit, whether that’s through family and friends or the 25% boost from the Government through the Lifetime Isa.”
Iain McKenzie, chief executive of the Guild of Property Professionals, commented: “We’re seeing a noticeable uplift in buyer and seller confidence, supported by falling mortgage rates and greater choice in the market.
“With dozens of mortgage deals now available below 4%, affordability is improving.”
Below are the average house prices along with the yearly growth, based on Halifax’s analysis (the regional annual change figures draw on the latest three months of sanctioned mortgage transactions):.
- East Midlands, £244,644, 2.5%.
- Eastern England, £334,795, 1.8%.
- London, £540,048, 0.6%.
- North East, £175,679, 2.0%.
- North West, £241,938, 4.4%.
- Northern Ireland, £212,189, 9.6%.
- Scotland, £214,891, 4.9%.
- South East, £389,069, 1.1%.
- South West, £303,271, 0.5%.
- Wales, £229,622, 3.9%.
- West Midlands, £260,394, 2.9%.
- Yorkshire and the Humber, £215,525, 4.2%.