UK house prices remained flat in June, according to the latest Halifax House Price Index. However, behind the headline figure, market activity appears to be gaining momentum.
The average property price now sits at £296,665, a minimal change from May’s figure of £296,782. While monthly growth stalled at 0.0%, house prices are still up by 2.5% compared to this time last year, indicating continued resilience across the market.
The Landlord Insurance team here at Lansdown have summarised the significant changes and what they mean for property owners.
Confidence returning to the market
Following a quiet spring, the housing market is starting to pick up pace. Halifax reports a notable rise in mortgage approvals and a rebound in property transactions, helped by more stable interest rates and continued wage growth, two key factors that are helping buyers regain confidence.
Lenders are also adopting a more flexible approach to affordability assessments in response to recent regulatory guidance. According to Halifax, this has already helped an additional 3,000 buyers secure a mortgage they may not have previously qualified for, including over 1,000 first-time buyers.
Regional price trends: Northern Ireland leads the way
Price growth continues to vary across the UK. Northern Ireland saw the strongest annual growth at +9.6%, with average prices now at £212,189. Elsewhere:
- Scotland recorded annual growth of +4.9%
- Wales followed with +3.9%
- The North West of England led among English regions, with prices up +4.4%
In contrast, growth remained more subdued in the South West and London, where prices rose just +0.5% and +0.6% respectively.
Despite the slower growth, London remains the most expensive area in the UK, with the average home now costing £540,048.
An outlook for the rest of 2025
Affordability pressures persist, particularly for homeowners approaching the end of their fixed-rate deals, and the wider economic outlook remains uncertain. However, the average rate on new mortgages is now at its lowest since 2023, and markets are pricing in further rate cuts from the Bank of England later this year. These factors suggest modest house price growth is still likely in the second half of 2025.
This article is for informational purposes only and should not be considered legal advice.
About Lansdown Insurance Brokers
Lansdown Insurance Brokers are specialists in Landlord Insurance and Block of Flats Insurance. We can provide flexible policies to suit your needs. Whether you’re a landlord, letting agent, or property owner, call the team on 01242 524498 or email enquiries@lansdowninsurance.com.
Lansdown is part of the Benefact Group, a charity-owned, international family of financial services companies that gives all available profits to charity and good causes.