Halifax Describes Housing Market as “Steady” as Prices Hold Flat in June
Halifax has described the UK housing market as “steady” in its latest House Price Index, with data showing house price growth was flat in June—following a small decline of 0.3% in May.
Annual house price inflation slowed slightly from 2.6% to 2.5%, and average property prices edged down on a quarterly basis by 0.3%. The average UK home is now valued at £296,665, a marginal drop from £296,782 last month.
Despite these modest figures, there are some encouraging signs. Halifax reported that first-time buyer numbers have returned to pre-Stamp Duty change levels, suggesting renewed confidence among new buyers.
Regional Highlights
Northern Ireland leads the way with the strongest annual growth at 9.6%, pushing average property prices to £212,189.
Scotland follows closely with a 4.9% annual rise, where homes now cost around £214,891.
Wales saw prices grow 3.9%, with the average property priced at £229,622.
In England, the North West recorded the highest growth at 4.4%, reaching an average price of £241,938.
By contrast, the South West and London experienced more subdued growth at 0.5% and 0.6% respectively, although the capital remains the UK’s most expensive region, with an average price of £540,048.
Market Outlook: Resilience and Cautious Optimism
Amanda Bryden, Head of Mortgages at Halifax, commented on the market's continued resilience:
“After a brief slowdown post-Spring Stamp Duty changes, we’re seeing a recovery in both mortgage approvals and transactions. Rising wages and stabilising interest rates are improving affordability, and lenders are showing more flexibility in affordability assessments.”
Halifax noted that in the past two months alone, it helped over 3,000 additional buyers—including 1,000 first-time buyers—access mortgages they would not have qualified for previously.
Still, challenges remain. High living costs and fixed-rate mortgage expirations continue to stretch household finances, and broader economic uncertainty lingers. That said, with two potential interest rate cuts expected from the Bank of England by the end of the year, the outlook for the second half of 2025 remains cautiously optimistic.
Industry Insights
The broader property industry is echoing this cautious optimism:
Nathan Emerson, Chief Executive of Propertymark, highlighted that the housing market has remained resilient despite global economic pressures and recent changes to Stamp Duty. He pointed to government initiatives—like the proposed National Housing Bank and Planning and Infrastructure Bill—as potential long-term boosts for housing supply and market confidence.
Tom Bill, Head of UK Residential Research at Knight Frank, offered a more reserved view. While prices are steady, he warns that increased supply and muted demand could temper any potential rebound. Asking prices, he said, will need to reflect the reality of a buyer’s market.
Iain McKenzie, CEO of The Guild of Property Professionals, took a more optimistic stance, noting that while headline growth is flat, the market is showing renewed momentum. He cited falling mortgage rates—with many deals now below 4%—and a 14% year-on-year increase in available homes, giving buyers more choice and stimulating sales activity.
“The market is stabilising, confidence is building, and we’re entering the second half of the year on firmer ground,” McKenzie said.
What This Means for You
If you’re thinking about buying or selling a home, now might be a good time to act. With improving affordability, more choice in the market, and potential interest rate cuts ahead, conditions are slowly tilting in favour of buyers and movers.
Have questions or want to discuss your options? Feel free to get in touch—we’re here to help you navigate the property market with confidence.
