House prices hold steady as market activity picks up pace
If you’re thinking about buying a home, moving, or remortgaging, it’s always a good idea to keep an eye on house price trends. The Halifax House Price Index is a reliable monthly report that gives a clear picture of how the market is performing.
For June 2025, the latest figures show that house prices have held steady – with no change from last month – but the bigger picture is more positive. Mortgage approvals are up, first-time buyers are back, and property transactions are increasing. Let’s break it down so it’s easy to understand and helps you make sense of what it means for you.
House prices remain steady
In June, the average house price was £296,665. That’s just £117 lower than in May – effectively no change at all. Over the last three months, prices have dipped slightly by 0.3%, but compared to this time last year, house prices are still 2.5% higher.
So what does this tell you? It suggests that while prices aren’t racing upwards, they’re also not falling. The housing market is showing signs of stability, which can help give you more confidence if you’re thinking about moving home or taking your first step onto the property ladder.
Key figures at a glance:
- Average house price: £296,665
- Monthly change: 0.0%
- Quarterly change: -0.3%
- Annual change: +2.5%
Activity is picking up
Even though prices have flattened, activity in the housing market is picking up. More people are applying for mortgages and completing purchases. This is likely due to a few different factors coming together:
- Interest rates have stabilised, making it easier to plan ahead.
- Wages are rising, which is improving affordability for some.
- Lenders are becoming more flexible, especially after recent regulatory changes.
Halifax say they’ve helped around 3,000 more buyers access mortgages in the last two months alone – over 1,000 of those were first-time buyers.
That’s a clear sign that buyers are returning and feeling a bit more confident. If you’re thinking about buying your first home, now could be a good time to explore your options.
What’s happening with mortgage approvals?
Figures from the Bank of England show that mortgage approvals rose by 3.9% in May, reaching just over 63,000. That’s a 3.3% increase compared to the same time last year.
It means more people are taking steps to buy homes, whether that’s moving to a new property or buying for the first time. If you’ve been sitting on the sidelines, this could be your opportunity to make a move before prices start rising again.
Property transactions are rising
Official HMRC data shows that property transactions increased sharply in May, up by 25.1% compared to April. On a quarterly basis, transactions were up by 7.6% compared to the previous three months.
That’s more evidence of a growing number of people entering the market. Whether it’s a first home, a move up the ladder, or even a buy-to-let investment, activity levels are rising.
It’s also worth noting that while activity is up month-to-month, total sales are still lower than this time last year. That shows the market is recovering, but it still has room to grow.
What’s happening across the regions?
House price growth varies a lot depending on where you live. Here’s how things are looking in different parts of the country:
- Northern Ireland leads the way with house prices up 9.6% year-on-year. Average price: £212,189
- Scotland follows with a 4.9% increase. Average price: £214,891
- Wales saw prices rise by 3.9%. Average price: £229,622
- In England, the North West performed best, up 4.4% to £241,938
- London and the South West had the slowest growth at just 0.6% and 0.5% respectively, but London remains the most expensive area with an average price of £540,048
So, depending on where you’re looking, your experience could vary quite a bit. If you’re not sure where to start or need help understanding what you can afford in different regions, get in touch – we can help you make sense of it.
A stable outlook
Although prices are flat this month, Halifax say the market is showing resilience. The recent dip in activity following the spring stamp duty changes seems to be over, and things are starting to pick up again.
There are still some challenges. Affordability remains stretched for many, especially those coming off fixed-rate mortgages. And while inflation has come down, it’s not yet where it needs to be. There are also signs that the jobs market may be softening.
That said, financial markets are expecting the Bank of England to cut interest rates twice by the end of the year. If that happens, borrowing could become even more affordable, giving the housing market a further boost.
What does this mean for you?
If you’re a first-time buyer, it’s encouraging to see lenders being more flexible and the number of mortgage approvals increasing. There could be more support available than you think – even if you’ve been turned down before or are unsure about your income.
If you’re remortgaging, now might be the time to look at your options. Rates on new mortgages are at their lowest since 2023, and a bit of forward planning could save you a significant amount over the long term.
If you’re moving home, price stability means you can plan more confidently, especially with activity picking up. It may also be easier to sell your existing property than it was earlier in the year.
Speak to us for advice
At Kerr & Watson, we help people every day to find the right mortgage or protection for their situation. Whether you’re just starting out or reviewing your current deal, we’re here to guide you through it all in plain English.
If you’d like tailored advice based on your circumstances, contact us today. We’ll help you understand your options, compare lenders, and make a decision that works for you now – and in the future.
The full report for more insights on the current state of the UK housing market: Halifax Price Index June 2025
Source: Halifax
