UK house prices remained largely stable in June, with the average price experiencing a minor decrease of -0.2% from May. The annual rate of house price growth held steady at +1.6%, leaving the typical UK home valued at £288,455, compared to £288,931 in May.
Amanda Bryden, head of mortgages at Halifax, said: “UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms. On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455.
“This continued stability in house prices – rising by just +0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering. For now, it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.
“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.
“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”
Northern Ireland recorded the strongest annual house price growth in the UK, rising by +4.0% in June, up from +3.3% the previous month. The average property price in Northern Ireland is now £192,457. In England, the North West saw the steepest annual house price increase at +3.8%, bringing the average price to £231,351. Scotland also saw an increase, with a typical property costing £204,663, up +1.6% from the previous year. In Wales, house prices grew by +2.7% annually, reaching £220,197.
Eastern England was the only region to register a decline in house prices over the last year, with the average price falling by -0.9% to £328,747 in June. London remains the most expensive area in the UK, with average property prices at £536,306, an increase of +0.9% compared to last year.
Nathan Emerson, CEO at Propertymark, added: “The announcement of a general election last month may have caused movement in the housing market to slow down, but now that we know we have a new government with an overall working majority, Propertymark remains optimistic that house prices will start to rise during the summer months, which is a naturally busy time for the housing market.
“Beforehand, it would be good for the new UK Government to clarify what its housing policies are going to be quickly, and a rumoured interest rate cut from the Bank of England hopefully becoming a reality in August would help trigger a substantial amount of confidence in the housing sector yet again.”
