In a welcome sign of resilience for the UK property sector, the latest Halifax House Price Index reveals that house prices are holding firm amid a noticeable uptick in market activity. As buyer confidence begins to return and seasonal momentum builds, the data suggests a stabilising market that could mark the beginning of a more sustained recovery. With steady prices and increased engagement, this report offers a cautiously optimistic outlook for the months ahead.
Industry experts and professionals have reacted:
Karen Noye, mortgage expert at Quilter comments:
“House price growth was flat last month, according to the latest Halifax house price index, with 0.0% growth in June following a 0.3% fall in May. Annual growth held steady at 2.5% and the average property price came in at £296,665. Today’s house price index looks a little more positive than other indices already published which reported a fall in prices. While the changes to stamp duty coupled with the ongoing affordability pressures are still weighing on the market, Halifax’s print suggests house prices seem to be holding up relatively well.
While the market has been resilient, there are still challenges to contend with. Prospective buyers had been clinging onto hopes that mortgage rates would continue to fall, but progress has mostly stalled for now. The Bank of England recently reported a paltry 0.02% fall in the effective interest rate on new mortgages in May, bringing it to 4.47%. This leaves buyers paying considerably higher rates than those enjoyed a few years ago and may price out many buyers who are now also facing elevated upfront stamp duty costs.
Meanwhile, net mortgage approvals for house purchases – an indicator of future borrowing – stayed relatively flat at 63,000 in May. While this was the first increase since December 2024, it was only marginal, suggesting that while there has been a slight lift in buyer confidence, the market is likely to remain sluggish for some time yet.
With the summer holidays fast approaching, we could see a slowdown as trips abroad take precedence over moving home. The market is used to a dip in momentum during this time of the year but having already had a fairly slow start to 2025, we could see this lull push house prices down a little 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.”
Nathan Emerson, CEO of Propertymark, comments:
“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.”
Amanda Bryden, Head of Mortgages, 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. 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.
Of course, challenges remain. 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 job market may be softening.
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.”
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.”
Foxtons CEO, Guy Gittins, states:
“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 commented:
“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 said:
“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.”
