UK house prices have held steady in June 2025, marking a continuation of a subdued yet resilient housing market. According to the latest figures from Halifax, the average property price edged slightly down to £296,665 from £296,782 in May, effectively remaining flat month-on-month after revisions trimmed the previous month’s decline to 0.3%. Despite this lull, prices were still 2.5% higher compared to June 2024, underscoring a muted but ongoing upward trend over the year.

The housing market’s endurance appears rooted in a mix of economic factors that have bolstered buyer confidence. Amanda Bryden, head of mortgages at Halifax, highlighted rising wages and stabilised interest rates as key elements easing affordability pressures. Lenders’ adoption of more flexible affordability criteria following updated regulatory guidance has also played a role in encouraging mortgage approvals and invigorating property transactions after a brief spring slowdown triggered partly by stamp duty changes.

However, these broad trends mask significant regional disparities. The North West of England recorded the highest house price growth at 4.4% year-on-year, while Northern Ireland again led with an impressive 9.6% annual increase. Scotland and Wales also experienced robust gains, with rises approaching 4-5%. Contrasting sharply are London and the South West, where prices barely inched up by around 0.5-0.6%, reflecting weaker demand and a glut of properties on the market. Industry experts note that the surplus supply, especially in southern regions, has created a buyer’s market where sellers often need to offer price reductions to attract interest.

This regional imbalance is linked to broader market changes, including an influx of second homes and holiday lets being sold, particularly in coastal areas of the South West. Property agents report that an oversupply has led some estate agents to refuse listings that they deem overpriced, highlighting how market dynamics now favour cautious, realistic pricing.

Looking ahead, Halifax anticipates modest house price growth in the latter half of 2025, buoyed by expectations of two further interest rate cuts by the Bank of England and currently attractive mortgage rates, which are near their lowest levels since 2023. Yet, this optimism is tempered by warnings from other market watchers. Tom Bill, head of residential research at Knight Frank, cautioned that despite stable prices, evidence of rising supply and weakening buyer demand suggests any rebound may be limited. His analysis shows that new property listings have outpaced new buyer interest significantly, contributing to ongoing market softness.

Moreover, concerns about potential tax increases loom over the market. Jeremy Leaf, a north London estate agent, pointed out that anticipated tax rises this autumn could offset any benefits from lower interest rates, slowing transaction speeds and dampening price momentum—particularly for higher-value homes.

Further context from other sources shows a mixed picture on asking prices and transaction activity. Rightmove reported a rare monthly fall in UK asking prices by 0.3% in June, including sharper drops in London and the South East, against a background of rising listings and slightly increased buyer interest. This heightened competition among sellers has led to more competitive pricing strategies. The Bank of England’s recent decision to hold interest rates at 4.25% after multiple cuts since mid-2024 adds another dimension of uncertainty to future market movements.

Despite variations in data and some conflicting signals, the overall consensus suggests that while the UK housing market remains resilient with pockets of growth, it is also undergoing a cautious adjustment phase. The evolving balance between affordability, supply, demand, and external economic factors will likely dictate the shape of the market through the rest of 2025 and beyond.

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Source: Noah Wire Services