UK house prices remained stable in June 2025, the most recent Halifax House Price Index finds, as confidence remains in its recovery to the housing market. The average house price is £296,665, just off May’s £296,782, a period of consolidation rather than expansion.
Even though monthly expansion flattened at 0.0%, this is after a modest fall of -0.3% in May, and this would suggest that the market could be finding its footing back onto an even keel as a result of improved buyer confidence, level interest rates, and higher mortgage activity.
June 2025 Halifax House Price Index: Summary Points
- Average house price: £296,665 (unchanged month-on-month)
- Annual house price growth: +2.5% (slightly lower than May at +2.6%)
- Quarterly change: -0.3%
- Mortgage approvals increase: +3.9% in May 2025 relative to April
- Household transactions: +25.1% month-to-month (HMRC statistics)
- First-time purchasers: Back to pre-reform stamp duty levels
- Northern Ireland: Fastest regional expansion at +9.6% year-on-year
Market Stabilising as Activity Picks Up
The resilience of the market is growing ever clearer even in the face of ongoing economic doubt. Halifax Mortgages Head Amanda Bryden said the housing market “remained steady” in June, observing that mortgage approvals and sales are rising strongly over recent months. This rebound follows a mid-year slump caused by spring stamp duty fluctuations, which temporarily cooled demand. Nevertheless, increased incomes, steady interest rates, and eased affordability tests have all helped to boost buyer confidence.
Regional Trends: Where Are Prices On the Briskest Pace?
Nationwide house prices may have steadied, but regional variations continue to be strong:
- Northern Ireland leads the way with +9.6% year-on-year, the UK’s largest, with the average property now at £212,189.
- Scotland and Wales also posting strong year-on-year growth of +4.9% and +3.9% respectively.
- North West recorded the strongest growth in English areas, up +4.4% to an average of £241,938.
On the other hand, London and the South West increased much more modestly at +0.6% and +0.5% respectively. However, London remains the priciest, with average prices reaching £540,048.
What This Means for Buyers and Sellers
For Buyers
It could now be a good time to enter the market. With house prices showing little movement, wages growth gaining momentum, and mortgage rates at their lowest level since 2023, affordability pressures are beginning to ease, especially for first-home buyers, who can now get access to lending under new affordability rules more readily.
That said, there is still soft competition, with the latest RICS survey showing continued negative buyer demand (-26%). This can give buyers greater room to negotiate or entry to pricier properties, particularly in slower-performing areas.
For Sellers
While flat month-on-month growth is not to be welcomed, it is a sign of stability. Following the uncertainty generated by recent rate and tax changes, sellers can take heart from signs that demand is beginning to reappear, particularly as volumes of deals and mortgage approvals continue to rise.
But price sensitivity remains a problem, especially at higher price levels in areas such as the South East and London. Sellers will need to get their pricing realistic and ought to refer to up-to-date valuations from local agents.
Mortgage Market Outlook: Conditions Relaxing
The mortgage market continues to improve:
- The new mortgage average rate taken is at its lowest since 2023.
- Regulatory changes have prompted lenders to make affordability checking more accommodating, allowing thousands more, including especially first-time buyers, to access finance.
- Bank of England statistics echo a 3.9% increase in May 2025 mortgage approvals and year-to-date approvals are 3.3% up compared with the same stage last year.
- As markets predict two further Bank of England rate cuts over 2025, lending will likely be even more beneficial in the coming months.
Conclusion: What Does the Future Hold for the UK Property Market?
The UK property market is holding its ground after a period of disruption. While we’re not seeing major price increases, the flat performance in June marks a stabilisation that many buyers and sellers will welcome. Increased activity, low interest rates, and more supportive lending criteria are positive signs, particularly for those planning to make a move in the second half of 2025.
As always, sellers and purchasers will need to keep one eye on local trends, value and interest rate forecasts to be in a position to make an educated decision.
Thinking of Buying in 2025?
Whether you are buying for the first time or moving up the ladder, being in the know is critical. Give our team at Oportfolio a call today to see how we can help.
