House prices remain flat, but market showing some resilience

Joe Nellis, MHA’s economic advisor, comments on the Halifax House Price Index.

The latest data from the Halifax House Price Index for June 2025 indicates that the UK house prices have started to balance out following a slowdown over the last few months. A period of steady interest rates is giving buyers the confidence to return to the market. 

On an annual basis, house prices were up by around 2.5% compared to June 2024, maintaining the same rate of growth recorded in May. This steady year-on-year increase suggests some underlying resilience in the housing market, despite monthly fluctuations.

Regional differences again remain pronounced. Stronger price growth has been observed in areas such as Scotland and Wales, while London and the South West continue to lag behind, reflecting more muted activity and affordability pressures.

Broadly speaking, market conditions remain relatively balanced, with supply and demand largely aligned. However, housing affordability continues to limit the purchasing power of many, particularly first-time buyers and those targeting higher-value properties.

Despite a notable fall in inflation in recent years, borrowing costs remain elevated. High interest rates and persistent cost-of-living pressures are continuing to dampen buyer sentiment, while ongoing political and policy uncertainty has contributed to a more cautious tone in the market.

That said, structural factors such as a strong labour market and continued household formation are helping to support demand at a foundational level.