What's happened
In June 2025, the UK housing market remained stable, with average property prices at £296,665, unchanged from May. Despite a slight dip in May, factors like wage growth and stable interest rates are supporting buyer confidence. However, affordability remains a concern as the job market shows signs of softening.
What's behind the headline?
Key Insights
- Market Stability: The average house price remained stable in June, indicating resilience despite economic uncertainties.
- Affordability Challenges: While wage growth is easing pressures, many buyers still face affordability issues, particularly those nearing the end of fixed-rate mortgage deals.
- Interest Rate Outlook: Expectations of further interest rate cuts by the Bank of England could support modest price growth in the latter half of 2025.
- Regional Variations: The housing market's performance varies significantly across regions, with lower-priced areas showing better sales resilience.
- Future Predictions: Analysts predict modest single-digit growth in house prices as borrowing costs decrease, but caution that the market remains a buyer's market due to high supply and weak demand.
What the papers say
According to The Independent, Halifax reported a zero percent month-on-month change in average UK property values for June, with Amanda Bryden noting that the market's resilience is driven by rising wages and stable interest rates. Conversely, The Guardian highlighted concerns about affordability, stating that while the market is stable, the job market may be softening, which could impact buyer confidence. Nationwide's report indicated a 0.8% drop in average house prices, the largest decline in over two years, suggesting that the end of the stamp duty holiday has weakened demand. This contrast in reports illustrates the complexities of the current housing market, where some indicators suggest stability while others point to potential challenges ahead.
How we got here
The UK housing market has faced fluctuations due to recent changes in stamp duty and economic conditions. The end of temporary tax cuts in April 2025 has added costs to property transactions, impacting buyer behavior and market dynamics.
Go deeper
- What factors are influencing the current housing market?
- How are interest rates expected to change in the coming months?
- What regions are seeing the most significant changes in property prices?
Common question
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What Are the Latest Trends in the UK Housing Market?
The UK housing market has shown resilience in recent months, with average property prices remaining stable despite economic fluctuations. As buyers navigate this landscape, understanding the current trends is crucial. Below, we explore key questions surrounding house prices, affordability, and the factors influencing the market.
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Nationwide Building Society is a British mutual financial institution and the largest building society in the world.
As of 2024, it serves over 16 million members and operates entirely for their benefit, without shareholders. The society was established..
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northwestern coast of the European mainland.
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Halifax is a British banking brand operating as a trading division of Bank of Scotland, itself a wholly owned subsidiary of Lloyds Banking Group.
It is named after the town of Halifax, West Yorkshire, where it was founded as a building society in 1853.