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UK annual house price growth eased ever-so-slightly last month, though transactions and mortgage approvals have picked up after a ‘brief slowdown’, mortgage lender Halifax said in its latest tracker on Monday. Year-on-year house price growth slowed slightly to 2.5% in June, from 2.6% in May. On-month, prices were flat. Prices had fallen 0.3% in May from April. ‘The market’s resilience continues to stand out and, after a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market. That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead,’ Halifax analyst Amanda Bryden said. ‘Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening.’ Bryden noted that the growing conviction of more Bank of England rate cuts, with markets pricing in two more this year, has sent the average rate on newly drawn mortgages to the lowest level since 2023. Bryden added: ‘We continue to expect modest house price growth in the second half of the year.’ The BoE cut by 25 basis points in each of February and May, and held rates in April and June. Bank rate stands at 4.25%. Its next decision is on August 7. From the end of March, the temporary increase in the zero-rate stamp duty thresholds ended. For first-time buyers of a home under £500,000, the zero-rate band fell to £300,000 from £425,000 previously. For other home buyers, the threshold reduced to £125,000 from £250,000. The measures were announced by UK Chancellor Rachel Reeves in the October autumn budget. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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