"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"
- Amanda Bryden - Halifax
House prices held steady in June, showing no monthly growth, as activity in the housing market began to recover. According to Halifax, the average UK property price remained nearly unchanged at £296,665 compared to £296,782 in May.
This marks a pause in growth following a small decline of -0.3% the previous month. On an annual basis, prices were up +2.5%, a slight dip from the +2.6% recorded in May.
Among UK nations, Northern Ireland continued to lead with the strongest annual house price inflation, rising by +9.6% year-on-year. The average home there now costs £212,189.
Scotland followed with a +4.9% increase, bringing the average property price to £214,891. Wales saw annual growth of +3.9%, with the average property priced at £229,622.
In England, the North West saw the most robust growth among the regions. Prices rose by +4.4% over the past 12 months, taking the regional average to £241,938.
By contrast, growth was more muted in the South West and London. Prices rose by +0.5% and +0.6% respectively. However, the capital continues to be the most expensive housing market in the UK, with average prices now at £540,048.
“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,” said Amanda Bryden, head of mortgages at Halifax. “At £296,665, the average house price is still around +2.5% higher than this time last year.”
Bryden noted that buyer activity has picked up again after a brief slowdown earlier this 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,” she explained. “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 started to adopt a more flexible stance in response to updated guidance, Bryden added. “Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments,” she said. “Over the last 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.”
Despite these improvements, some hurdles remain for prospective homeowners. “Of course, challenges remain,” Bryden acknowledged. “Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening.”
However, expectations for further monetary easing later in the year could offer some support to buyers. “But 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,” Bryden noted.
Industry reaction
Tom Bill, head of UK residential research at Knight Frank, commented, “House prices may have held steady, but high supply and weak demand suggest this is not the start of a rebound. New listings were 9% higher than last year between January and June, but new prospective buyers were down by 8%.
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. We expect modest single-digit house price growth in 2025 as rates come down in the second half of the year, but asking prices need to reflect the fact that it is very much a buyer’s market.”
Nathan Emerson, CEO of Propertymark, said, “Today’s news suggests that house prices have dropped quarterly and that there has been no monthly increase in house prices, which demonstrates that the UK housing market has faced considerable upheaval in response to a turbulent global economy and Stamp Duty thresholds in England and Northern Ireland increasing from the beginning of April.
“However, the UK Government is expressing a lot of positive noises to boost England’s housing supply and increase confidence in the housing market in general. These include creating a National Housing Bank to invest in building 500,000 new homes, and the speed at which the Planning and Infrastructure Bill has progressed through Parliament so far, all of which should have long-term benefits, alongside the devolved administrations meeting their own housing targets.”
Foxtons CEO, Guy Gittins, commented, “Despite house price growth remaining flat on a month to month basis, today’s Halifax figures continue to illustrate the strength in the market with the longer term view of market health showing house prices remain higher on an annual basis.
"We’ve already seen a heightened degree of activity over the first six months of the year and, as we head into H2, our expectation is that market activity will continue to strengthen.”
Verona Frankish, CEO of Yopa, said, “The latest house price data from Halifax paints a picture of a market that is stabilising, not slowing.
"The fact that prices remained flat rather than falling in June suggests that buyer sentiment is improving and many are adjusting to current borrowing conditions and new stamp duty thresholds.
"The return of first-time buyer activity is particularly encouraging and reflects a growing sense of normality in the market.
"With the summer traditionally being a busy season, we’re optimistic that transaction levels will pick up further, especially if mortgage rates become more competitive.”
Marc von Grundherr, Director of Benham and Reeves, comments, “The property market continues to demonstrate remarkable resilience, with house prices holding steady in June despite ongoing pressure from elevated mortgage rates and wider economic uncertainty.
"While growth has softened slightly on an annual basis, the underlying fundamentals remain robust, particularly in key urban areas where demand for quality housing continues to outstrip supply.
"We’re also seeing increased confidence from international buyers and returning first-time purchasers, now that the impact of the stamp duty changes have levelled out.”
