Halifax: First-time buyers return, but June house prices remained unchanged

According to Halifax, the average price of a home increased by just £117 during the previous month

Will the real estate market remain strong?

In June, house prices remained unchanged after falling 0.3 percent in May, according to the most recent Halifax real estate data.

Today, the average price of a home in the UK is 296,665, which is just 117 pounds more than it was last month (296,782) and 0.3 percent less than it was last quarter.

Although the UK housing market experienced a slowdown after the stamp duty hike on April 1, Amanda Bryden, head of mortgages at Halifax, stated that the market's resilience "continues to stand out" in spite of this.

Since April, there has been an increase in mortgage approvals and real estate transactions; according to the Bank of England and HMRC, respectively, nearly 4% more mortgages were approved in May and 25% more transactions were completed in May.

More stable interest rates have given people more confidence to plan ahead, and rising wages have eased affordability pressures, which has helped the housing market. This includes a reversion to pre-stamp duty change levels for first-time purchasers.

Moreover, the housing market has benefited from new regulatory guidance that allows for greater flexibility in affordability assessments.

"Affordability is still stretched, especially for people who are nearing the end of fixed-rate mortgage agreements. The state of the economy is also still unclear; although inflation has decreased, it is still higher than expected, and there are indications that the labor market may be improving.

In 2025, will home prices increase?

The second half of 2025 may see an increase in home prices as the Bank of England is predicted to lower mortgage rates to their lowest level since 2023 and cut rates once more this year.

"As we move into H2, we anticipate that market activity will continue to strengthen, as we've already witnessed a heightened degree of activity over the first half of the year," stated Guy Gittins, CEO of Foxtons.

But some analysts are not quite so optimistic. The housing market's slow recovery from the weak economy and the increase in stamp duty on April 1st, according to Ashley Webb, an economist at Capital Economics, is indicated by June's stagnation.

"Although there are some positive indications that a recovery is starting, it most likely won't occur quickly enough to reach our current prediction of a 35% increase in the year to Q4 2025.

The fastest-rising home prices are found where?

Despite a nationwide stagnation in home prices, some regions continue to perform significantly better than others.

Northern Ireland once again saw the fastest annualized price growth in the UK, as has been the case for a while. The average home now costs 212,189, which is 9 points 6 percent more than it did a year ago.

The average home in Scotland costs 214,891, and prices are rising rapidly there as well, with annual growth reaching 4 percent.

There have also been reports of faster-than-average growth in Wales, where average property prices have increased by 4 points during the past year to reach 241,938.

In England, there are notable regional differences in the rise of real estate prices.

The north west has maintained its recent success, rising 4 points 4 percent over the last year to an average of 241,938, maintaining its position as the area in England with the fastest-growing real estate prices.

In the meantime, growth in the south west and London has been much more muted, with average house prices rising by only 0.5 and 0.6 percent, respectively, over the past year.

With an average price of 540,048 for a home in the capital, London remains by far the most expensive place in the UK to purchase real estate.