UK House Prices Flat June Up 2.5% Year-on-Year Halifax

UK house prices held steady in June with no monthly growth, maintaining an average price of £296,665, according to the Halifax House Price Index. Despite a slight decline in May, annual house price growth remains positive at 2.5%, supported by rising wages and stabilized interest rates that are improving affordability and buyer confidence. Mortgage approvals and property transactions have increased slightly following a brief slowdown after spring stamp duty changes, with lenders adopting more flexible affordability assessments to help more buyers, including first-timers, access mortgages. However, the market continues to face challenges such as higher mortgage rates and upfront stamp duty costs, which may deter some prospective buyers. The summer holiday period could lead to a further slowdown in housing market activity, but the market is expected to regain momentum closer to autumn as buyers adjust to new tax and cost conditions. Overall, while the market remains resilient, it is likely to stay sluggish for some time amid economic uncertainties and changing government policies.