House prices remained flat at £296,665 in June after a dip of 0.3% in May, the most recent index from Halifax reveals.
Annual progress has edged downwards to 2.5% from 2.6% the earlier month, however exercise is selecting up tempo, in line with the lender.
First-time purchaser numbers have returned to the degrees seen earlier than the stamp responsibility deadline.
Northern Ireland as soon as once more noticed the quickest tempo of annual home value inflation in the UK at 9.6% taking the typical price of a house to £212,189.
In Scotland, prices rose by 4.9% yr on yr to achieve £214,891.
Property prices in Wales elevated 3.9%, to a median of £229,622.
Within England, the North West had the best home value inflation at 4.4% over the past yr to £241,938.
The South West and London proceed to see the weakest progress, with prices rising by 0.5% and 0.6% respectively.
However, the capital stays by far the most costly place to purchase in the UK with the typical residence now £540,048.
Halifax head of mortgages Amanda Bryden says:“The market’s resilience continues to face out and, after a short slowdown following the spring stamp responsibility adjustments, mortgage approvals and property transactions have each picked up, with extra patrons returning to the market.
“That’s being helped by a couple of key elements: wages are nonetheless rising, which is easing among the stress on affordability, and rates of interest have stabilised in latest months, giving folks extra confidence to plan forward.
“Lenders have additionally responded to new regulatory steerage by taking a extra versatile strategy to affordability assessments.”
Bryden says that over the previous two months an additional 3,000 patrons have been capable of qualify for a Halifax mortgage that they might not have been capable of entry earlier than the change, together with greater than 1,000 first-time patrons.
Nevertheless, she says: “Affordability continues to be stretched, significantly for these coming to the top of fixed-rate offers
“The financial backdrop additionally stays unsure; whereas inflation has eased, it’s nonetheless above goal, and there are indicators the job market could also be softening.
“But with markets pricing in two extra price cuts from the Bank of England by yr finish, and the typical price on newly-drawn mortgages now at its lowest since 2023, we proceed to anticipate modest home value progress in the second half of the yr.”
Quilter mortgage professional Karen Noye says that in the present day’s figures look extra optimistic than different latest indices, which have proven a drop in prices, however challenges stay.
She says: “Prospective patrons had been clinging onto hopes that mortgage charges would proceed to fall, however progress has largely stalled for now.
“The Bank of England lately reported a paltry 0.02% fall in the efficient rate of interest on new mortgages in May, bringing it to 4.47%.
“This leaves patrons paying significantly increased charges than these loved a couple of years in the past and should value out many patrons who at the moment are additionally going through elevated upfront stamp responsibility prices.
“Meanwhile, web mortgage approvals for home purchases – an indicator of future borrowing – stayed comparatively flat at 63,000 in May.
“While this was the primary enhance since December 2024, it was solely marginal, suggesting that whereas there was a slight elevate in purchaser confidence, the market is more likely to stay sluggish for a while but.”
North London property agent and a former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “More inventory, not solely means higher selection, however additional patrons.
“The progress in new enterprise is proving resilient whereas current gross sales are persevering with regardless of some renegotiations supported by wage progress above inflation and secure mortgage charges.
“However, optimism with regard to additional price cuts this yr has been partly offset by worries of tax will increase in the autumn.
“The web result’s slower, longer transactions and softening prices so sellers, significantly of higher-value houses, must recognise market sensitivities in the event that they wish to stand out from the group.”
