UK house prices remained unchanged in June, following a 0.3% drop in May, according to Halifax. The average home value stood at £296,665—2.5% higher than the same time last year.

Amanda Bryden, Head of Mortgages at Halifax, noted the market's resilience: “After a slowdown linked to spring stamp duty changes, both mortgage approvals and property transactions have picked up, thanks to rising wages and stabilising interest rates.”

Regional trends

Northern Ireland continued to lead UK property growth, with prices rising 9.6% annually to an average of £212,189. Scotland followed with 4.9% growth, pushing average prices to £214,891.

Other notable figures:

Wales: Prices rose 3.9% to £229,622

North West England: Up 4.4% to £241,938

London: Minimal growth of 0.6%, though still the UK’s most expensive market at £540,048

South West England: Prices up just 0.5%

Market challenges

Karen Noye, mortgage expert at Quilter, warned of ongoing hurdles: “Buyers had hoped for falling mortgage rates, but that momentum has stalled.” The Bank of England reported only a slight drop in new mortgage rates in May, down just 0.02% to 4.47%.

Separate data from Nationwide showed a sharper 0.8% monthly decline in June, with average home values dropping to £271,619—the biggest fall since February 2023.

Ashley Webb, economist at Capital Economics, said the housing market remains weak and is still feeling the impact of stamp duty changes and a softening labour market. However, he predicts interest rate cuts next year could drive a stronger recovery in 2026.

Support for first-time buyers

Halifax reported that lenders are adopting a more flexible approach to affordability checks. Over 1,000 first-time buyers were able to secure mortgages in the past two months, aided by revised Bank of England stress test guidelines introduced in March.

In total, 3,000 additional buyers accessed mortgages they previously wouldn’t have qualified for, as regulators and the government push for more accessible lending practices.