House prices flat in June, says Halifax: What will happen to values in the rest of 2025?
The mortgage lender revealed the average property price is now £296,665 compared to £296,782 last month.
This follows from a 0.4 per cent fall recorded in May when the typical home value dropped £1,150 on average.
However, despite the recent blip, Halifax says the average house price is still 2.5 per cent higher than this time last year.
'The market's resilience continues to stand out,' said Amanda Bryden, head of mortgages at Halifax.
'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.
'That's 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.'
Almost flat: The average property price is now £296,665 compared to £296,782 last month
Where are house prices rising the most and least?
As has been the story for a while now, there are considerable regional disparities when it comes to house prices.
The property market in the South West and London are particularly slow, according to Halifax.
Annually, prices in the South West are up 0.5 per cent while in the capital they have risen 0.6 per cent.
Among the English regions, the North West has seen the highest house price growth, up 4.4 per cent over the last year.
Northern Ireland continues to record the biggest jumps, up by 9.6 per cent over the past year. The typical home now costs £212,189.
Property prices in Scotland are up 4.9 per cent with average prices now at £214,891, while prices in Wales were up 3.9 per cent to an average of £229,622.
Nicholas Finn, managing director of buying agents Garrington Property Finders says in many areas in the south of England the number of homes coming onto the market far exceeds the number of potential buyers.
'This is keeping price rises to a minimum, or even pushing prices down,' said Finn. 'In some areas the glut of supply is so acute that estate agents are refusing to list homes where they feel the owner is asking for an unrealistic price.
'The imbalance is greatest in southern England, but is no longer just limited to the capital and its commuter belt.
'Halifax's data shows that the slowest rate of price growth is now in the South West - a reflection of the large numbers of second homes and holiday let properties being sold by their disenchanted owners.
'The net effect has been to turn the south into a buyer's market - in which buyers can ask for, and with the right seller, get a significant reduction in asking price.'
What next for house prices?
Halifax is expecting some house price growth in the second half of the year, not least because of lower mortgage rates.
'With markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year,' said Halifax's Amanda Bryden.
Tom Bill, head of residential research at Knight Frank warned that asking prices need to reflect the fact it is very much a buyer's market.
'House prices may have held steady, but high supply and weak demand suggest this is not the start of a rebound,' said Bill.
'New listings were 9 per cent higher than last year between January and June but new prospective buyers were down by 8 per cent.
'Supply is higher following the stamp duty cliff edge in March and as more landlords sell, but consumer confidence remains weak after economic activity was pulled forward into the first quarter of the year.'
Jeremy Leaf, a north London estate agent, also says that any house price momentum from lower interest rates is likely to be countered by fear of further tax rises in the autumn.
He said: 'Optimism with regard to further rate cuts this year has been partly offset by worries of tax increases in the autumn.
'The net result is slower, longer transactions and softening prices so sellers, particularly of higher-value homes, need to recognise market sensitivities if they want to stand out from the crowd.'
How to find a new mortgage
Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible.
Buy-to-let landlords should also act as soon as they can.
Quick mortgage finder links with This is Money's partner L&C
> Mortgage rates calculator
> Find the right mortgage for you
What if I need to remortgage?
Borrowers should compare rates, speak to a mortgage broker and be prepared to act.
Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it.
Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees.
Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone.
What if I am buying a home?
Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be.
Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power.
What about buy-to-let landlords
Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages.
This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too.
How to compare mortgage costs
The best way to compare mortgage costs and find the right deal for you is to speak to a broker.
This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice.
Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.
If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you.
> Find your best mortgage deal with This is Money and L&C
Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.
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