Average house prices held firm at £358,000 in June, according to the latest House Price Index from e.surv and Acadata, suggesting a possible end to the recent trend of modest declines.
While prices remain 1.3% lower than the same time last year, the data indicates that market conditions may be stabilising.
London, which had previously exerted downward pressure on national figures, showed signs of recovery.
In May, the capital posted a 2.7% monthly rise in average prices and contributed only -0.2% to the annual England and Wales price change – the first time in 18 months that its influence was not a major drag on the wider market.
Transaction levels also appear to be improving, with HMRC data pointing to a partial revival in buyer activity in May, following disruptions linked to stamp duty changes earlier in the year.
Rob Owens, head of research at e.surv, said: “Looking ahead, easing mortgage affordability rules and expectations of interest rate cuts could support demand, especially in London and the South.
“The Spending Review focused on the social rented sector, with further details on home ownership support expected later this year.
“If combined with rising mortgage approvals and improving sentiment, the market could finish 2025 on a stronger note.”
