Halifax House Price Index May 2026

House prices in May 2026 were 0.5% higher compared to the same month a year earlier

The latest Halifax House Price Index for May 2026 shows that house prices have remained largely stable despite ongoing economic uncertainty. While average property prices dipped slightly during the month, the overall picture suggests that the housing market continues to show resilience.

If you are thinking about buying your first home, moving house, remortgaging or investing in property, these figures can help you understand what is happening in the market and what it could mean for your plans.

Average House Prices Remain Steady

According to Halifax, the average property price in May 2026 was £298,806. This represents a small monthly decrease of 0.1%, following an identical fall in April.

The average property price has fallen by around £445 compared to the previous month, when the average stood at £299,251.

Key figures from the latest report include:

• Average house price: £298,806
• Monthly change: -0.1%
• Quarterly change: -0.2%
• Annual change: +0.5%

Although prices have edged down slightly over the past two months, annual growth remains positive. This means that, overall, property values are still higher than they were a year ago.

What Is Affecting House Prices?

Several factors continue to influence the property market.

Mortgage rates have reduced in recent months, which has helped improve affordability for some buyers. However, borrowing costs remain higher than they were at the beginning of the year, largely due to inflation expectations.

When mortgage payments remain higher, buyers can often borrow less or become more cautious about their budgets. This can reduce demand and put some pressure on house prices.

At the same time, wider global events and economic uncertainty continue to affect confidence among buyers and sellers.

Despite these challenges, the housing market remains active, with transaction levels staying relatively stable. People are still buying and selling homes, even if they are taking a little longer to make decisions.

What Does This Mean If You Are Buying a Home?

If you are looking to buy a property, stable house prices can create opportunities.

Rapid house price growth can make it difficult to save for a deposit or keep up with rising values. A more stable market may give you additional time to find the right property without feeling pressured by significant price increases.

First-time buyers continue to face challenges, but there are signs of improvement.

Halifax reports that annual house price growth among first-time buyers is currently just 0.3%. In addition, many lenders have introduced more flexible affordability assessments and expanded their range of low-deposit mortgage products.

This means you may have more options available than you expect, particularly if you have struggled to meet affordability requirements in the past.

If you are unsure how much you could borrow or which lenders may be suitable for your circumstances, seeking mortgage advice can help you understand your options.

Regional House Price Performance

One of the most interesting parts of the Halifax report is the difference in performance across the various regions and nations.

As has been the case for some time, northern areas continue to outperform many southern markets.

Northern Ireland Leads the Way

Northern Ireland recorded the strongest annual house price growth once again.

Key figures include:

• Annual growth: +7.8%
• Average property price: £227,177

Strong demand, limited housing supply and relatively affordable property prices continue to support growth in this area.

Scotland Continues to Perform Well

Scotland also saw healthy growth during the year.

• Annual growth: +3.8%
• Average property price: £222,650

This suggests that demand remains relatively strong, helping to support property values.

Wales Sees Growth Slow

House price growth in Wales has slowed considerably compared to previous years.

• Annual growth: +0.1%
• Average property price: £230,355

While prices are still rising, growth has become much more modest.

Northern England Remains Strong

Several northern English regions continue to record positive growth.

North East:

• Annual growth: +3.1%
• Average property price: £181,703

North West:

• Annual growth: +3.0%
• Average property price: £248,304

These areas continue to attract buyers thanks to relatively affordable property prices and stronger value for money compared with many southern regions.

Southern Markets Continue to Face Pressure

In contrast, some southern areas continue to see house prices fall.

South East:

• Annual change: -2.1%
• Average property price: £382,704

London:

• Annual change: -1.5%
• Average property price: £534,375

While these regions remain among the most expensive places to buy property, affordability pressures continue to affect demand.

What Could Happen Next?

Looking ahead, much will depend on mortgage rates, inflation and consumer confidence.

If mortgage costs continue to fall, this could encourage more buyers to enter the market and support stronger levels of demand.

However, if borrowing remains expensive, house prices may continue to move sideways rather than showing significant growth.

Current expectations suggest that property prices are likely to remain broadly stable over the coming months.

For buyers, this may provide an opportunity to make plans without the pressure of rapidly increasing prices. For homeowners, it means property values are generally holding up despite wider economic challenges.

What Should You Do If You Are Planning a Move?

Market headlines only tell part of the story.

The right time to buy, move or remortgage depends on your personal circumstances, income, deposit and future plans.

Even in a stable housing market, mortgage rates, lender criteria and affordability rules can vary significantly between lenders. Finding the right mortgage can therefore make a substantial difference to your monthly payments and long-term costs.

At Kerr & Watson, we help first-time buyers, home movers, remortgage clients and property investors understand their options and find suitable mortgage solutions for their circumstances.

Whether you are looking to get onto the property ladder, move to a larger home or review your existing mortgage, our experienced advisers can guide you through the process and help you make informed decisions.

Need Mortgage Advice?

If you are considering buying a property, remortgaging or simply want to understand your options, contact Kerr & Watson today.

We can help you navigate changing market conditions, compare mortgage options and find a solution that works for your individual circumstances. The latest Halifax House Price Index shows a market that remains stable, and with the right advice, you can move forward with confidence.

The full report for more insights on the current state of the UK housing market: Halifax Price Index May 2026

Source: Halifax