House price growth flat in June at 0.0%, says the Halifax
House price growth was flat in June, at 0.0% versus a dip of -0.3% in May, while the annual rate of growth edged down to +2.5% from +2.6 in May. The average property price is now £296,665, compared to £296,782 last month, according to the Halifax.
The lender said first-time buyer numbers have returned to pre-stamp duty change levels and that Northern Ireland has by far the strongest annual price growth in the UK, with prices up by +9.6% over the past year. The typical home now costs £212,189.
Scotland recorded the next strongest annual house price growth in June, increasing by +4.9% with average prices now at £214,891. Property prices in Wales were up +3.9%, to an average of £229,622. Among English regions the North West has the highest rate of property price inflation, up +4.4% over the last year to £241,938.
The South West and London continue to see more subdued growth, with prices rising by just +0.5% and +0.6% respectively. However, the capital remains by far the most expensive part of the UK, with the average home now priced at £540,048.
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 jobs 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."
Katy Eatenton, Mortgage & Protection Specialist at Lifetime Wealth Management, said: "The Halifax are spot on in highlighting the increased flexibility lenders as a whole are taking when it comes to affordability. This has without doubt softened the lull in activity following the stamp duty deadline.
“In our experience, the property market was fairly active in June, despite the ongoing headwinds facing the economy. Buyers feel like they're in the driving seat at the moment and sellers are having to price realistically if they want to get the transaction done.”
Babek Ismayil, Founder at homebuying platform, OneDome, also highlighted the measures taken by lenders to address affordability: "Affordability remains an issue for many prospective homeowners so it's no surprise to see the Halifax singling it out once again. Lenders have been really innovating in recent months in an effort to solve the ever-present obstacle of affordability and while progress has been made it’s still a huge hurdle for first-time buyers.
“A rate cut next month would potentially ignite the market but that is not guaranteed given how sticky inflation is proving. The next set of inflation data will be key, as will this week's May GDP data. If it comes in weaker than expected following the 0.3% contraction in the economy in April, a cut may well be on the cards. Last week, the Bank of England revealed that mortgage approvals rose in May, which suggests the market is starting to bounce back and that confidence is still there.”
Meanwhile, Rob Peters, Principal at Simple Fast Mortgage, said “the market is in a holding pattern”. He added: “Buyers are cautious, sellers are holding their nerve and the market is waiting for the Bank of England to blink. Flat growth isn’t a crisis or a boom. Expect more of this sideways movement until rate cuts materialise and buyer sentiment gets the jolt it needs.”
Rohit Kohli, Director at The Mortgage Stop, said the lack of supply is one factor supporting house prices: “House prices may be flat on the month, but with annual growth still at +2.5%, it’s clear demand hasn’t gone away. Until the UK builds enough homes, the supply shortfall will continue to support prices. We’re still seeing strong interest from buyers - especially first-time buyers - who are adapting to affordability pressures rather than stepping back. Lower fixed rates and more flexible lending criteria are helping, but affordability is still tight, particularly for those remortgaging off low-rate deals.”
Ranald Mitchell, Director at Charwin Mortgages, was upbeat despite the flat data: “The property market is regaining its pulse. First-time buyers are back, lenders are loosening up and stable rates are breathing life into demand. With rate cuts on the horizon, we could be gearing up for a late-year bounce in house prices.”
Riz Malik, Director at R3 Wealth, said “the loosening of criteria allowing people to borrow more is certainly helping to keep momentum in the market. The Bank of Mum and Dad is also helping with an increasing number of buyers using parental assistance for subsequent purchases rather than just getting their children onto the property ladder.”
