The average UK house price remained unchanged in June at £296,665, according to the latest Halifax House Price Index.
This follows a monthly decline of 0.3% in May, but prices are still 2.5% higher than in June last year.
Amanda Bryden, head of mortgages at 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.”
She added that improving affordability and a return in buyer demand were supporting the market. “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.”
Bryden noted that lender responses to recent Bank of England guidance have had a tangible impact. “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.”
Nathan Emerson, chief executive of Propertymark, said: “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.”
He added: “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.”
Amy Reynolds, head of sales at Antony Roberts in Richmond, said: “The ongoing resilience of the housing market, despite continued economic uncertainty, is evident with a strong number of sales agreed and prices largely holding firm.
“The flight to quality continues to be a feature, with buyers more selective and price-sensitive but continuing to transact.
“We’re seeing buyers lose out because they hesitated in the hope of further price drops, only for another buyer to come in and secure the property.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Mortgage rates are only part of the picture – the easing of criteria and changes to mortgage stress tests by lenders such as Nationwide and NatWest, following changes to Bank of England guidance in March, means tens of thousands of pounds of extra borrowing may now be available to buyers.
“This is boosting affordability, enabling more borrowers to get the mortgages they need. If interest rates fall further, as expected, this will give a further boost to activity and transactions later in the year.”
Further Reaction
Tanya Elmaz, director of sales at Together:
“June’s house prices remaining unchanged shows a level of cautiousness lingering in the market, as potential house buyers continue to weigh up their options while mortgage rates remain relatively high.
“With hopes for a Bank of England base rate cut in August, homebuyers and investors alike will be positioning themselves to seize all opportunities in the months ahead. However, access to finance remains a challenge for many – especially those with complex incomes or purchasing unusual property.
“Not everyone’s property plans fall into a ‘one-size-fits-all’ model. Those keen to move forward with their plans could consider opting for a specialist lender who can assess their situation on the case at hand and take a more flexible approach, and this may make all the difference for borrowers who don’t quite fit the rigid mainstream mould. It is always recommended to consult a professional mortgage advisor to find the best solution to your individual needs.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“More stock, not only means greater choice, but extra buyers. The growth in new business is proving resilient while existing sales are continuing despite some renegotiations supported by wage growth above inflation and stable mortgage rates.
“However, optimism with regard to further rate cuts this year has been partly offset by worries of tax increases in the autumn. The net result is slower, longer transactions and softening prices so sellers, particularly of higher-value homes, need to recognise market sensitivities if they want to stand out from the crowd.”
Tomer Aboody, director of specialist lender MT Finance:
“June turned out to be a stronger month for the market compared to the previous one, with more buyers returning, especially first-time purchasers, as interest rates remain steady and lenders are more flexible when it comes to mortgage approvals.
“Sales numbers still need to improve; with fewer properties on the market, encouragement is required via a reform in stamp duty.”
Jason Tebb, president of OnTheMarket:
“Although buyers brought forward purchases in order to take advantage of the stamp duty concession, since then the housing market has demonstrated remarkable resilience, shaking off external economic concerns amid evidence of plenty of activity.
“Recent base rate cuts have been fundamental in boosting confidence and activity. Further rate reductions from the Bank of England will provide much-needed stimulus for the market and boost buyer and seller confidence as the year progresses.
“As property prices remain relatively steady, affordability continues to impact what buyers are able or willing to pay. Relaxing of criteria by lenders following recent guidance from the Bank may enable borrowers to take on bigger mortgages, but evidence suggests they continue to remain sensitive on price.”
Guy Gittins, CEO of Foxtons:
“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:
“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:
“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.”
