House costs remained flat at £296,665 in June after a dip of 0.3% in May, the newest index from Halifax exhibits.
Annual development has edged downwards to 2.5% from 2.6% the earlier month, however exercise is selecting up tempo, based on the lender.
First-time purchaser numbers have returned to the degrees seen earlier than the stamp obligation deadline.
Northern Ireland as soon as once more noticed the quickest tempo of annual home value inflation within the UK at 9.6% taking the typical price of a house to £212,189.
In Scotland, costs rose by 4.9% yr on yr to achieve £214,891.
Property costs 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 development, with costs rising by 0.5% and 0.6% respectively.
However, the capital stays by far the most costly place to purchase within the UK with the typical dwelling now £540,048.
Halifax head of mortgages Amanda Bryden says:“The market’s resilience continues to face out and, after a quick slowdown following the spring stamp obligation adjustments, mortgage approvals and property transactions have each picked up, with extra consumers returning to the market.
“That’s being helped by a couple of key elements: wages are nonetheless rising, which is easing among the strain 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 steering by taking a extra versatile method to affordability assessments.”
Bryden says that over the previous two months an additional 3,000 consumers have been in a position to qualify for a Halifax mortgage that they’d not have been in a position to entry earlier than the change, together with greater than 1,000 first-time consumers.
Nevertheless, she says: “Affordability remains 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 count on modest home value development within the second half of the yr.”
Quilter mortgage skilled Karen Noye says that at this time’s figures look extra constructive than different latest indices, which have proven a drop in costs, however challenges stay.
She says: “Prospective consumers had been clinging onto hopes that mortgage charges would proceed to fall, however progress has principally stalled for now.
“The Bank of England not too long ago reported a paltry 0.02% fall within the efficient rate of interest on new mortgages in May, bringing it to 4.47%.
“This leaves consumers paying significantly increased charges than these loved a couple of years in the past and should value out many consumers who are actually additionally going through elevated upfront stamp obligation prices.
“Meanwhile, internet mortgage approvals for home purchases – an indicator of future borrowing – stayed comparatively flat at 63,000 in May.
“While this was the primary improve since December 2024, it was solely marginal, suggesting that whereas there was a slight raise in purchaser confidence, the market is prone 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 better selection, however additional consumers.
“The development in new enterprise is proving resilient whereas current gross sales are persevering with regardless of some renegotiations supported by wage development 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 within the autumn.
“The internet result’s slower, longer transactions and softening costs so sellers, significantly of higher-value properties, must recognise market sensitivities in the event that they need to stand out from the group.”
