5 June 2026
If you are covering the latest Halifax House Price Index, please see the following comment from Karen Noye, mortgage expert at Quilter:
“UK house prices are softening slightly, as the various pressures facing the market continue to shape activity. Prices fell by 0.1% in May and annual growth edged up from 0.4% to 0.5%, taking the average property price to £298,806.
“Seasonally, this is typically a period where activity holds up reasonably well, but momentum can become more uneven as the summer progresses. As the holiday season takes hold and attention shifts from new homes to holidays, we often see a further softening in demand, particularly through July and August.
“The Bank of England has held rates for now, and attention is increasingly turning to the June decision, where policymakers are widely expected to keep rates unchanged again. However, the outlook remains uncertain. Ongoing tensions in the Middle East leaves the Bank navigating a narrow path, with limited room to signal a clear direction for rates while pressures persist.
“For now, the housing market is likely to remain on a subdued footing. While mortgage rates have edged down from their recent highs as swap rates have stabilised, the improvement has been gradual rather than decisive and borrowing costs remain elevated by recent standards.
“That continues to weigh on affordability. Buyers are having to balance higher mortgage repayments alongside wider pressures on household finances, which is taking some of the heat out of demand and keeping activity levels in check.
“For those looking to buy or remortgage, the environment remains finely balanced. Rates are no longer moving sharply higher, but nor is there a clear downward trajectory. In this kind of market, staying close to developments and reviewing options early, ideally with professional advice, will leave borrowers better placed in the long run.”
