House prices stayed largely steady last month, according to the latest update from Halifax.
The mortgage lender reported that the average property price now stands at £296,665, which is only slightly down from £296,782 the previous month.
This follows a modest drop of 0.4 per cent recorded in May, when the typical home value dipped by around £1,150 on average.
Despite this recent small decline, Halifax noted that average house prices remain 2.5 per cent higher than they were at the same point last year.
Amanda Bryden, head of mortgages at Halifax, commented on the market’s ongoing resilience, highlighting that it continues to defy expectations despite wider economic pressures.
She pointed out that after a brief period of slowing activity earlier this spring—largely linked to changes in stamp duty rules—both mortgage approvals and property transactions have started to pick up again.
Bryden suggested that more buyers are gradually returning to the market, helped by several supporting factors that are easing the strain many have felt in recent years.
One key reason for this renewed activity is that wages are still increasing, which is helping to offset some of the challenges around affordability.
In addition, interest rates have remained steady in recent months, bringing a sense of stability and giving potential buyers greater confidence to plan ahead.
According to Halifax, this stability has encouraged people to revisit their plans to move or get on the property ladder.
Bryden also noted that lenders have adapted in response to fresh regulatory guidance, becoming more flexible in how they carry out affordability checks.
This has opened the door for some buyers who might have previously struggled to secure a mortgage under stricter conditions.
While monthly movements in house prices can vary, Halifax’s data suggests that the overall trend remains broadly positive when compared with the same time last year.
Looking ahead, market watchers and buyers alike will be keeping an eye on how economic conditions, wage growth and any further changes to lending rules might shape property values over the rest of 2025.
For now, the figures underline a housing market that, despite occasional dips, continues to show underlying strength.
Where are house prices rising the most and least?
It’s a familiar story by now: house price trends continue to show notable differences depending on where you look across the UK.
According to Halifax, the property markets in the South West and London remain especially sluggish compared to other regions.
Over the past year, property prices in the South West have edged up by just 0.5 per cent, while London has seen a similarly modest rise of 0.6 per cent.
In contrast, the North West has fared considerably better. Among all the English regions, it has experienced the strongest annual growth, with prices climbing by 4.4 per cent over the last twelve months.
Northern Ireland, however, continues to lead the way with the most significant increases in house prices. Over the past year, property values there have surged by 9.6 per cent, pushing the typical home price up to £212,189.
Scotland has also seen steady growth, with average house prices rising by 4.9 per cent to reach £214,891.
Meanwhile, in Wales, property prices have grown by 3.9 per cent over the past year, bringing the average home value to £229,622.
Nicholas Finn, managing director at Garrington Property Finders, offered some insight into why certain parts of the country are seeing less price movement.
He explained that in many parts of southern England, the number of properties coming onto the market is far greater than the number of active buyers.
This oversupply is having a clear impact: it’s keeping price rises subdued and, in some cases, even pushing prices down.
Finn added that in areas where the surplus of homes is especially pronounced, estate agents are increasingly refusing to list properties when they feel the seller’s asking price is unrealistic.
He noted that while this trend has long affected the capital and its commuter belt, it’s now spreading further across the south of England.
Data from Halifax shows that the slowest annual price growth is currently being recorded in the South West. Finn attributes this partly to large numbers of second homes and holiday lets being put on the market by owners who may have grown frustrated with the current conditions.
As more properties are listed and fewer buyers are around to snap them up, the south of England has effectively become a buyer’s market.
This shift means that buyers, particularly those who move quickly and negotiate firmly, can often secure notable reductions from the original asking price.
In short, while prices in some areas continue to rise modestly, the broader picture highlights an increasingly divided property market across the UK.
What next for house prices?
Here’s a rewritten, longer version divided into multiple paragraphs in British English so it feels natural, original and not copied:
Halifax has suggested that house price growth could pick up slightly during the second half of the year, helped along by the prospect of lower mortgage rates.
Amanda Bryden, head of mortgages at Halifax, pointed out that financial markets are currently pricing in the likelihood of two further rate cuts from the Bank of England by the end of the year.
She also noted that the average rate on newly drawn mortgages has now fallen to its lowest point since 2023, which is expected to support some modest growth in house prices over the coming months.
However, not everyone in the property sector shares this cautiously optimistic outlook.
Tom Bill, who is head of residential research at Knight Frank, warned that sellers should remain realistic when setting asking prices, especially given current market conditions.
According to Bill, although house prices have largely remained steady so far, the combination of higher supply and weaker demand suggests this shouldn’t be mistaken for the beginning of a sustained rebound.
He highlighted figures showing that between January and June this year, the number of new listings was around 9 per cent higher than in the same period last year.
At the same time, however, the number of new prospective buyers registering interest was actually down by about 8 per cent.
This imbalance, with more homes coming onto the market but fewer buyers looking, has created what Bill described as a classic buyer’s market.
One factor behind the increase in supply is thought to be the rush of property transactions just before the end of March, driven by changes to stamp duty.
Additionally, more landlords appear to be selling up, which has further boosted the number of homes available for sale.
Yet despite these changes on the supply side, consumer confidence has remained fairly subdued, partly because some economic activity was brought forward into the first quarter of the year.
Jeremy Leaf, a north London estate agent, added another note of caution, suggesting that even if mortgage rates fall further, there are other concerns weighing on the market.
He explained that any boost to buyer confidence from possible interest rate cuts is being partly cancelled out by fears of potential tax rises in the autumn.
Leaf said that this uncertainty is leading to slower transactions and a softening of prices, particularly at the higher end of the market.
He advised sellers who genuinely want to secure a sale to be mindful of the current sensitivities, suggesting that being realistic about pricing is more important now than ever if they want to stand out from the competition.
Overall, while lower mortgage rates could bring some modest relief, experts warn that sellers and buyers alike need to stay grounded in what remains a complex and finely balanced market.
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