UK house prices remain stable in June: Halifax HPI

Posted on Friday, July 5, 2024

The steepest rate of house price inflation was found in the North West. 

Average UK house prices held steady in June, down by just -0.2% on a monthly basis, with the typical UK home now costing £288,455 compared to £288,931 in May, according to the latest Halifax house price index.

The annual rate of house price growth was unchanged from last month at 1.6%.

Northern Ireland recorded the strongest property price growth of any nation or region in the UK, rising by 4.0% on an annual basis in June, up from 3.3% the previous month. 

In England, the steepest rate of house price inflation is found in the North West, up by 3.8% over the last year, now standing at £231,351.

House prices in Scotland increased by 1.6%, while in Wales, house prices grew annually by 2.7%.

Eastern England was the only region or nation across the UK to register a decline in house prices over the last year, down -0.9% in June on an annual basis.

London continues to have the most expensive property prices in the UK, now averaging £536,306, up (+0.9%) compared to last year.

Amanda Bryden, head of mortgages at Halifax, said: "UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms. On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455.

“This continued stability in house prices – rising by just 0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering. For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.

“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.

“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”

Tom Bill, head of UK residential research at Knight Frank, commented: “Stubbornly-high mortgage rates and the uncertainty of a general election means the UK housing market has not experienced a particularly strong seasonal bounce this spring. We expect trading volumes to increase from the autumn as a rate cut becomes imminent and relative calm returns to Westminster. A Labour victory will have little bearing on what happens in the property market in 2024 and our forecast of an average 3% UK rise is unchanged.”

Nathan Emerson, CEO at Propertymark, added: “The announcement of a general election last month may have caused movement in the housing market to slow down, but now that we know we have a new government with an overall working majority, Propertymark remains optimistic that house prices will start to rise during the summer months, which is a naturally busy time for the housing market.

"Beforehand, it would be good for the new UK Government to clarify what its housing policies are going to be quickly, and a rumoured interest rate cut from the Bank of England hopefully becoming a reality in August would help trigger a substantial amount of confidence in the housing sector yet again.”

Via @PropertyReporter