6 June 2025
If you are covering the latest Halifax house price index, please see the following comment from Holly Tomlinson, financial planner at Quilter:
"The latest Halifax House Price Index shows that UK house prices fell by 0.4% in May, with the average property now valued at £296,648. However, prices were still up by 2.5% compared to this time last year, suggesting that while activity has slowed, the market remains surprisingly robust.
“Following the end of the temporary stamp duty thresholds in April, the housing market saw a clear shift in momentum. Buyers rushed to complete transactions in March to avoid higher tax bills, but activity cooled noticeably in April, as shown by the Bank of England’s latest mortgage approval figures. Despite this drop in demand, house prices have not fallen off a cliff.
“The fact that prices fell only modestly in May indicates that supply remains constrained and sellers have not yet been forced to adjust their expectations. However, with affordability still stretched and borrowing costs relatively high, the risk of a more prolonged slowdown cannot be ignored.
“Mortgage rates are edging down slightly , but for many buyers, this remains a far cry from the ultra-low rates of recent years. For those coming to the end of a fixed deal, the jump in monthly repayments can be significant, adding to the financial strain.
“Looking ahead, market confidence will likely hinge on the timing and pace of interest rate cuts. A more meaningful pick-up in buyer demand may not materialise until there is clearer evidence that mortgage costs are on a sustained downward path. For now, the market appears to be pausing for breath after a frenetic start to the year."
