The latest Halifax House Price Index revealed that the quarterly house price change was -0.3% and the monthly change was flat.
The report continued that the average house price stands at £296,665, compared to £396,782 last month.
Halifax added that first-time buyers have returned to pre-stamp duty change levels.
From a regional perspective, Northern Ireland recorded the fastest pace of annual property price inflation in the UK at 9.6% year-on-year with the typical home costing £212,189.
Scotland reported the next strongest annual house price growth in June of 4.9%, with the average house price coming to £214,891.
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Property prices in Wales increased 3.9% year-on-year to an average of £229,622.
Looking at English region, the North West has the highest rate of property price inflation, up 4.4% over the last year to £241,938.
The South West and London saw more “subdued growth”, with prices rising by 0.5% and 0.6% over the past year respectively.
Housing market’s ‘resilience continues to stand out’
Amanda Bryden, head of mortgages at Halifax, said that the “market’s resilience continues to stand out”.
She said that after a “brief slowdown” following stamp duty changes, mortgage approvals and property transactions have picked up and more buyers are 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,” Bryden noted.
She added that lenders have also taken a “more flexible approach to affordability assessments” following updated regulatory guidance.
Bryden said that over the last two months, following its own stress rate change, it had helped an additional 3,000 buyers, including more than 1,000 first-time buyers, access a mortgage they wouldn’t have qualified for before.
“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.
“But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year,” she noted.
House price outlook ‘looks a little more positive’
Karen Noye, mortgage expert at Quilter, said that the house price outlook “looks a little more positive” than other indices already published which reported a fall in prices.
She continued: “While the changes to stamp duty coupled with the ongoing affordability pressures are still weighing on the market, Halifax’s print suggests house prices seem to be holding up relatively well.
“While the market has been resilient, there are still challenges to contend with. Prospective buyers had been clinging onto hopes that mortgage rates would continue to fall, but progress has mostly stalled for now.”
Noye added that this leaves “buyers paying considerably higher rates than those enjoyed a few years ago and may price out many buyers who are now also facing elevated upfront stamp duty costs”.
“Meanwhile, net mortgage approvals for house purchases – an indicator of future borrowing – stayed relatively flat at 63,000 in May. While this was the first increase since December 2024, it was only marginal, suggesting that while there has been a slight lift in buyer confidence, the market is likely to remain sluggish for some time yet.
“With the summer holidays fast approaching, we could see a slowdown as trips abroad take precedence over moving home. The market is used to a dip in momentum during this time of the year but having already had a fairly slow start to 2025, we could see this lull push house prices down a little more,” she added.
Noye continued that the market may not see activity pick up in Autumn, by that time stamp duty changes will have “sunk in”.
“Buyers will have no choice but to adjust to the new norm if they wish to move home, and we could see the market pick up some pace as a result,” she said.
