The UK housing market showed stability in June 2025, with average house prices virtually unchanged at £296,665, a marginal dip from May's £296,782. While monthly growth flatlined at 0.0 percent, the annual rate remains positive at 2.5 percent, slightly down from May's 2.6 percent. The market's resilience is notable, driven by rising wages, stabilised interest rates, and more flexible lending, which has brought first-time buyer activity back to pre-stamp duty change levels.

Regionally, Northern Ireland led the surge with a remarkable 9.6 percent annual growth, followed by Scotland at 4.9 percent, and Wales at 3.9 percent. In England, the North West led regional growth at 4.4 percent, while London and the South West continued to experience tepid growth of 0.6 percent and 0.5 percent, respectively. Despite slow growth, London remains the UK's most expensive region, with average property prices at £540,048.

Although affordability challenges persist, especially for homeowners nearing the end of fixed-rate mortgage deals, the broader outlook remains cautiously optimistic. With mortgage rates at their lowest since 2023 and expectations of two more Bank of England rate cuts, modest house price growth is forecast for the remainder of the year.

The Halifax House Price Index (HPI) is the UK's longest running monthly house price measure with data covering the whole country going back to January 1983. The index is based on the largest monthly sample of mortgage data, typically covering around 15,000 house purchases per month, and covers the whole calendar month. In March 2016 Markit announced that it would be acquiring the Halifax HPI from Lloyds Banking Group. Halifax continues to publish the index on behalf of Markit and both the name and the basic methodology remain unchanged. However, in May 2020, the annual growth measure was changed from the average of the last three months to just the latest month.

Home values affect much in the economy - especially the housing and consumer sectors. Periods of rising home values encourage new construction while periods of soft home prices can damp housing starts. Changes in home values play key roles in consumer spending and in consumer financial health. During the first half of this decade sharply rising home prices boosted how much home equity households held. In turn, this increased consumers' ability to spend, based on wealth effects and from being able to draw upon expanding home equity lines of credit.