UK house prices held firm in June, reinforcing signs of renewed stability in the housing market as buyer demand continues to recover, according to the latest figures from Halifax.
The average UK property price slipped by just £117 to £296,665, marking flat monthly growth of 0.0% following a -0.3% decline in May.
On an annual basis, house price inflation eased marginally to +2.5%, down from +2.6% the previous month.
The figures suggest momentum is returning to the market after a period of softness earlier this year, driven in part by higher borrowing costs and uncertainty over the interest rate outlook.
BUYER CONFIDENCE RETURNS
Amanda Bryden, Head of Mortgages at Halifax, says the housing market was proving “resilient,” with improving economic conditions drawing buyers back into the fold.
And she adds: “Mortgage approvals and property transactions have both picked up, with more buyers returning to the market.
“That’s being helped by rising wages, greater confidence around interest rates, and more flexible affordability assessments from lenders.”
Bryden says Halifax alone had enabled an additional 3,000 buyers to access mortgages over the past two months – of which more than 1,000 were first-time buyers – by widening affordability criteria.
RATE CUTS COMING
While affordability remains a challenge for many, especially those rolling off historic low fixed-rate deals, Bryden says that conditions are improving.
She adds: “Markets are pricing in two more Bank of England rate cuts by the end of the year. With newly drawn mortgage rates now at their lowest since 2023, we expect modest house price growth in the second half of the year.”
REGIONAL FOCUS
Northern Ireland continued to lead annual growth, with average property values rising +9.6% to £212,189. Scotland followed at +4.9% (£214,891), with Wales not far behind at +3.9% (£229,622).
In England, the North West was the strongest-performing region, posting annual growth of +4.4% to £241,938. By contrast, London and the South West saw subdued increases of just +0.6% and +0.5% respectively. The capital remains the UK’s most expensive market, with average prices standing at £540,048.
INDUSTRY REACTION
Tom Bill, head of UK residential research at Knight Frank, says: “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 it is very much a buyer’s market.”
MARKET WILL STRENGTHEN
Guy Gittins, Foxtons Chief Executive, says: “Despite house price growth remaining flat on a month to month basis, Halifax’s 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.”
STABILISING, NOT SLOWING
Verona Frankish, Chief Executive of Yopa, says: “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.”
STRONG DEMAND
Matt Thompson, head of sales at estate agency Chestertons, says: “Property buyers were hoping for another interest rate cut last month but higher-than-expected inflation diminished those odds.
“On a national level, some house hunters opted to pause their search or change their search criteria to find a home within their budget.
“In London, however, buyer demand remained relatively strong with a particular uplift in domestic buyers across central London where property prices have recently seen a price adjustment.”
IMPRESSIVELY RESILIENT
Jonathan Handford, Managing Director at Fine & Country, says: “The latest Halifax data reinforces what we’re seeing on the ground – a property market that is proving impressively resilient in the face of continued economic uncertainty.
“House prices were effectively flat in June, but this stability is a story in itself. Despite changes to the stamp duty threshold, buyers are returning with the intention of escaping the expensive rental market.
“What’s particularly encouraging is the rebound in first-time buyer activity, now back to pre-stamp duty change levels. Combined with stabilising interest rates and stronger wage growth, this is creating a more predictable and navigable market.
“Market conditions are improving and this is pushing more sellers to decide that now is the time to sell.”
“Market conditions are improving and this is pushing more sellers to decide that now is the time to sell, especially given that the summer months tend to be some of the busiest.
“An abundant supply of new homes for sale will give buyers the upper hand and keep prices competitive, especially in the south, where prices are higher and require more wriggle room from sellers.
“Looking ahead, expectations of further base rate cuts and easing inflationary pressures should provide additional support and reignite growth. A market that is steady, more affordable, and gradually building confidence will surely help build momentum that benefits both buyers and sellers alike.”
ROBUST FUNDAMENTALS
Marc von Grundherr, Director of Benham and Reeves, says: “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.”
GREATER CHOICE, EXTRA BUYERS
Jeremy Leaf, north London estate agent and a former RICS Residential Chairman, says: “More stock, not only means greater choice, but extra buyers.
“The growth in new business is proving resilient while existing sales are continuing despite some renegotiations supported by wage growth above inflation and stable mortgage rates.
“However, optimism with regard to further rate cuts this year has been partly offset by worries of tax increases in the autumn.
“The net result is slower, longer transactions and softening prices so sellers, particularly of higher-value homes, need to recognise market sensitivities if they want to stand out from the crowd.”
STEADY AS SHE GOES
Iain McKenzie, CEO of The Guild of Property Professionals, says: “The latest Halifax House Price Index reveals a market holding steady, with prices flat in June following a slight dip in May. While headline growth may appear muted, the underlying picture is one of growing resilience and renewed momentum in activity.”
“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, especially for those entering or moving within the market.
“This increased confidence is translating into action.”
“Importantly, this increased confidence is translating into action: transactions rebounded in May, mortgage approvals have surged, and the pace of agreed sales is at a four-year high.”
“However, price sensitivity remains a defining feature of the current market. Buyers are still navigating cost-of-living pressures and remain cautious, particularly in higher-value areas. The 14% year-on-year increase in available homes is providing buyers with more choice. This is a positive development for sales activity, but one that continues to cap upward price pressures.
“The Bank of England’s decision to hold rates last month reflected ongoing inflation concerns, but the signal that cuts may come as early as August is encouraging. If we see further reductions through the second half of the year, we expect this to inject fresh energy into the market heading into 2026.
“Overall, while price growth is flat, the fundamentals are shifting in a positive direction. The market is stabilising, confidence is building, and we’re entering the second half of the year on firmer ground.”
AFFORDABILITY STILL A CONCERN
Jason Tebb, President of OnTheMarket, says: “Although buyers brought forward purchases in order to take advantage of the stamp duty concession, since then the housing market has demonstrated remarkable resilience, shaking off external economic concerns amid evidence of plenty of activity.
“Recent base rate cuts have been fundamental in boosting confidence and activity.
“Further rate reductions from the Bank of England will provide much-needed stimulus for the market and boost buyer and seller confidence as the year progresses.
“As property prices remain relatively steady, affordability continues to impact what buyers are able or willing to pay. Relaxing of criteria by lenders following recent guidance from the Bank may enable borrowers to take on bigger mortgages but evidence suggests they continue to remain sensitive on price.”
FLIGHT TO QUALITY
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “The ongoing resilience of the housing market, despite continued economic uncertainty, is evident with a strong number of sales agreed and prices largely holding firm.
“The flight to quality continues to be a feature, with buyers more selective and price-sensitive but continuing to transact. We’re seeing buyers lose out because they hesitated in the hope of further price drops, only for another buyer to come in and secure the property.
“High mortgage rates have cooled the market somewhat but demand remains underpinned by low supply in some areas. The key challenge is affordability – mortgage rates, higher stamp duty and for some, the increase in private school fees, is affecting many who would like to move but are unable to.”
POSITIVE NOISES
Nathan Emerson, Chief Executive of Propertymark, says: “Halifax’s figures suggest 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.”
