UK house prices stable in June

For sale sign

Average house prices across the UK were largely flat in June, falling by just 0.2% on a monthly basis.

This slight fall is equivalent to less than £500 in cash terms, said Amanda Bryden, head of mortgages at Halifax.

The typical UK home now costs £288,455, compared to £288,931 in May.

Prices were up 1.6% from a year earlier, marking the seventh consecutive month of year-on-year growth.

The continued stability in house prices — with an overall increase of just 0.4% so far this year — reflects a market that remains subdued, though activity has been recovering.

“For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices,” Bryden explained.

She added that mortgage costs are still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. However, this squeeze is expected to gradually ease as interest rates come down and incomes rise, with house price growth remaining in check.

“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025,” Bryden said.