House prices rise in July
The latest Halifax House Price Index is out, and it shows that house prices rose in July by 0.4%, the highest monthly increase so far this year. This brings the average property price to £298,237, which is up by £1,080 compared to June.
Although the annual growth rate has slowed slightly to 2.4% (from 2.7% in June), the market remains stable, with many areas still showing steady increases in value. If you’re thinking about buying, moving, or remortgaging, this update will help you understand what’s going on and what it could mean for your next steps.
A Steady Month for House Prices
July saw a 0.4% rise in house prices – the biggest monthly jump since the start of the year. That’s around £1,080 added to the average property value.
The national average property price now sits at £298,237, compared to £297,157 last month. While this is a positive sign, the pace of annual growth is slowing slightly, down from 2.7% in June to 2.4% in July.
So what does this mean for you? It shows the market is moving, but not at the same pace everywhere. If you’re a first-time buyer or thinking of moving, it’s still a good time to review your options.
What’s Happening with Affordability?
You might be wondering if it’s any easier to afford a home right now. According to Halifax, things are starting to look a little better.
Wages are rising, and mortgage rates have eased slightly from the highs we saw over the past couple of years. That’s good news, especially if you’re feeling stretched.
There are also more flexible affordability checks in place, which can help if your circumstances don’t fit into the standard boxes.
If you’re not sure what your borrowing potential looks like right now, it’s a great time to get some personalised advice, you can also utilise our affordability calculators for an idea of your borrowing capacity.
Find out Your Options
The Bigger Picture
Even though the average house price is close to an all-time high, it’s important to remember that this figure is just an average. Prices still vary widely depending on location, property type, and local demand.
In fact, while some areas are seeing decent growth, others are much flatter. Some households are also facing tighter budgets, especially those coming to the end of pandemic-era fixed-rate mortgages.
One big factor affecting the market right now is the number of people whose fixed-rate mortgages are ending. Many of these deals were taken out during a time of very low interest rates, which means some borrowers are about to face higher monthly repayments.
However, not everyone will see a rise. Those coming off shorter-term deals (like two-year fixed rates) may actually see their monthly payments go down, as rates have dropped a bit since the peaks after the 2022 mini-budget.
Even so, some buyers may decide to hold off moving while they adjust to new costs. This could affect how active the market is over the next few months.
Regional Round-Up: Who’s Seeing the Biggest Growth?
There are some clear winners when it comes to house price growth over the last year. Here’s how things are looking around the country:
- Northern Ireland continues to lead the way with house prices up 9.3% year-on-year. The average home there now costs £214,832.
- Scotland saw prices rise by 4.7%, bringing the average to £215,238.
- Wales had a 2.7% increase, with average prices reaching £227,928.
- In England, the strongest annual growth was in:
- North West: up 4.0%, average price £242,293
- Yorkshire and the Humber: up 4.0%, average price £215,532
On the other hand, some regions saw more modest growth:
- South West, London, and the South East all had price growth of just +0.2% to +0.5%.
- London remains the most expensive region overall, with an average house price of £539,914.
These regional differences highlight the importance of getting localised advice if you’re planning to buy or sell.
What to Expect for the Rest of 2025
Looking ahead, Halifax expects house prices to keep rising gently for the rest of the year. That means no major spikes, but also no sudden drops, just a steady path forward.
The market is still adjusting to changing interest rates, cost of living pressures, and shifts in buyer behaviour. But overall, it’s showing resilience.
If you’re coming to the end of a fixed-rate mortgage or thinking of getting onto the ladder, it’s a good idea to review your options now. Planning ahead could help you avoid being caught out by rate changes or affordability surprises.
What Should You Do Next?
With house prices still rising (albeit slowly), it’s important to understand what this means for your situation. Whether you’re buying your first home, moving, or remortgaging, having the right advice can make all the difference.
At Kerr & Watson, we’re here to help you make sense of the figures and what they mean for your mortgage options. We take the time to understand your goals and find solutions that suit you – not just what’s on offer at the big banks.
If you’re unsure how much you can borrow, when to remortgage, or which lender is best for your needs, get in touch with us. A quick chat could help you feel more confident about your next move.
Ready to explore your options?
Contact Kerr & Watson today for honest, straightforward mortgage advice that’s built around you.
The full report for more insights on the current state of the UK housing market: Halifax Price Index July 2025
Source: Halifax
