UK house prices remained flat in June, with the average price of a residential property dipping by 0.2% monthly, according to the latest Halifax House Price Index. The annual house price growth rate was unchanged at +1.6%. The typical UK home now costs £288,455, down from £288,931 in May.
Northern Ireland saw the strongest property price growth in the UK, rising by 4% annually to £192,457. In England, the North West had the steepest house price inflation at +3.8%, now at £231,351. Scotland's house prices increased by +1.6% to £204,663, while Wales grew by +2.7% to £220,197.
Eastern England was the only UK region to register a decline, with prices down -0.9% to £328,747. London remains the most expensive, averaging £536,306, up +0.9% from last year.
Amanda Bryden, head of mortgages at Halifax, noted that UK house prices stayed relatively flat for the third month in June, reflecting a subdued market. She highlighted that mortgage affordability remains the biggest challenge but expects gradual easing through lower interest rates and rising incomes.
Industry reactions:
- Amy Reynolds (Antony Roberts): Falling prices are a correction from 2021 highs. Higher borrowing costs make homeownership challenging, and potential increased capital gains tax may lead to more ex-rental properties entering the market.
- Myles Moloney (Chase Buchanan): June’s market remained positive, driven by buyers with larger equity, though first-time buyers are cautious due to political uncertainties.
- Nicky Stevenson (Fine & Country): Despite elevated interest rates and political uncertainty, the property market is expected to remain buoyant, with improved consumer confidence and reduced time to sell properties.
- Jeremy Leaf: The election added to market nervousness, but resilient activity is expected to continue.
- Richard Vickery (Fulfords): June sales were subdued, but July looks promising post-election.
- Iain McKenzie (The Guild of Property Professionals): Despite high interest rates and election run-up, the market has been resilient. Confidence is returning, supported by sustained demand and potential interest rate cuts.
- Sharon Donaldson (Countrywide Scotland): The Scottish market remains resilient, driven by significant demand and strong competition, particularly for family homes.
