UK house prices are stagnating – here’s what people are paying right now
The UK’s house prices remained flat over the last month as the market continues to feel the impact of the spring stamp duty changes.
Data published by Halifax on Monday (7 July) shows 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.
“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,” said Amanda Bryden (Head of Mortgages at Halifax).
She noted that this is 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.
“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,” she said.
While Bryden is upbeat about the market, she noted that challenges remain . “Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening,” she said.
“But with markets pricing in two more rate cuts from the Bank of England by year-end, and the average rate on newly drawn mortgages is now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year,” she said.
Below is a breakdown of house prices across the UK:
- Northern Ireland once again recorded the fastest pace of annual property price inflation in the UK, up by +9.6% over the past year.
- The typical home now costs £212,189. Scotland recorded the next strongest annual house price growth in June, increasing by +4.9% with average prices now at £214,891.
- Property prices in Wales were up +3.9%, to an average of £229,622.
- Among English regions, the North West has the highest rate of property price inflation, up +4.4% over the last year to £241,938.
- The South West and London continue to see more subdued growth, with prices rising by just +0.5% and +0.6% respectively. However, the capital remains by far the most expensive part of the UK, with the average home now priced at £540,048.
