Residential property prices remained broadly unchanged last month, the latest data from Halifax has revealed.
According to the mortgage lender, the average property price now stands at £296,665 compared to £296,782 in May.
This follows from a 0.4% drop recorded in May when the typical home value dropped £1,150 on average.
But despite the recent dop, Halifax says the average price of a home is still up 2.5% year-on-year.
Halifax is expecting some house price growth in the second half of the year, supported in part by lower mortgage rates.
“The market’s resilience continues to stand out,” said Amanda Bryden, head of mortgages at Halifax. “After a brief slowdown following the spring stamp duty changes, mortgage approvals and property transactions have both picked up, with more buyers returning to the market.”
Northern Ireland continues to record the biggest jumps, up by 9.6 per cent over the past year. The typical home now costs £212,189.
Property prices in Scotland are up 4.9% with average prices now at £214,891, while prices in Wales were up 3.9% to an average of £229,622.
Among the English regions, the North West has seen the highest house price growth, up 4.4% over the last year.
Industry reactions:
Anthony Codling, an analyst at RBC Capital Markets, said: The UK housing market demonstrated significant resilience in June, house prices held firm and first-time buyers returned.
“Once again, the ending of the stamp duty holiday has followed its usual play book: a rush of transactions at the deadline approaches, a short lull, then back to business as usual. In our view stamp duty holidays pull housing transactions forward rather than creating more transactions overall.
“The return of first-time buyers is a positive sign, a key indicator of the health of the housing market and with wages still rising, and mortgage rates expected to fall the housing market is in good health as we approach the summer holidays.”
Matt Thompson, head of sales at Chestertons, commented: “Property buyers were hoping for another interest rate cut last month but higher-than-expected inflation diminished those odds. On a national level, some house hunters opted to pause their search or change their search criteria to find a home within their budget. In London, however, buyer demand remained relatively strong with a particular uplift in domestic buyers across central London where property prices have recently seen a price adjustment.”
Tom Bill, head of UK residential research at Knight Frank commented: “House prices may have held steady, but high supply and weak demand suggest this is not the start of a rebound. New listings were 9% higher than last year between January and June but new prospective buyers were down by 8%. Supply is higher following the stamp duty cliff edge in March and as more landlords sell, but consumer confidence remains weak after economic activity was pulled forward into the first quarter of the year. We expect modest single-digit house price growth in 2025 as rates come down in the second half of the year but asking prices need to reflect the fact it is very much a buyer’s market.”
Foxtons CEO, Guy Gittins, stated: “Despite house price growth remaining flat on a month to month basis, today’s Halifax figures continue to illustrate the strength in the market with the longer term view of market health showing house prices remain higher on an annual basis.
“We’ve already seen a heightened degree of activity over the first six months of the year and, as we head into H2, our expectation is that market activity will continue to strengthen.”
Verona Frankish, CEO of Yopa, remarked: “The latest house price data from Halifax paints a picture of a market that is stabilising, not slowing.
“The fact that prices remained flat rather than falling in June suggests that buyer sentiment is improving and many are adjusting to current borrowing conditions and new stamp duty thresholds.
“The return of first-time buyer activity is particularly encouraging and reflects a growing sense of normality in the market.
“With the summer traditionally being a busy season, we’re optimistic that transaction levels will pick up further, especially if mortgage rates become more competitive.”
Nathan Emerson, CEO of Propertymark, commented: “The news suggests that house prices have dropped quarterly and that there has been no monthly increase in house prices, which demonstrates that the UK housing market has faced considerable upheaval in response to a turbulent global economy and Stamp Duty thresholds in England and Northern Ireland increasing from the beginning of April.
“However, the UK government is expressing a lot of positive noises to boost England’s housing supply and increase confidence in the housing market in general. These include creating a National Housing Bank to invest in building 500,000 new homes, and the speed at which the Planning and Infrastructure Bill has progressed through Parliament so far, all of which should have long-term benefits, alongside the devolved administrations meeting their own housing targets.”
Jason Tebb, president of OnTheMarket, commented: “Although buyers brought forward purchases in order to take advantage of the stamp duty concession, since then the housing market has demonstrated remarkable resilience, shaking off external economic concerns amid evidence of plenty of activity.
“Recent base rate cuts have been fundamental in boosting confidence and activity. Further rate reductions from the Bank of England will provide much-needed stimulus for the market and boost buyer and seller confidence as the year progresses.
“As property prices remain relatively steady, affordability continues to impact what buyers are able or willing to pay. Relaxing of criteria by lenders following recent guidance from the Bank may enable borrowers to take on bigger mortgages but evidence suggests they continue to remain sensitive on price.”
Marc von Grundherr, Director of Benham and Reeves, said: “The property market continues to demonstrate remarkable resilience, with house prices holding steady in June despite ongoing pressure from elevated mortgage rates and wider economic uncertainty.
“While growth has softened slightly on an annual basis, the underlying fundamentals remain robust, particularly in key urban areas where demand for quality housing continues to outstrip supply.
“We’re also seeing increased confidence from international buyers and returning first-time purchasers, now that the impact of the stamp duty changes have levelled out.”
Jonathan Handford, MD at Fine & Country, commented: “The latest Halifax data reinforces what we’re seeing on the ground – a property market that is proving impressively resilient in the face of continued economic uncertainty.
“House prices were effectively flat in June, but this stability is a story in itself. Despite changes to the stamp duty threshold, buyers are returning with the intention of escaping the expensive rental market.
“What’s particularly encouraging is the rebound in first-time buyer activity, now back to pre-stamp duty change levels. Combined with stabilising interest rates and stronger wage growth, this is creating a more predictable and navigable market.
“Market conditions are improving and this is pushing more sellers to decide that now is the time to sell, especially given that the summer months tend to be some of the busiest.
“An abundant supply of new homes for sale will give buyers the upper hand and keep prices competitive, especially in the south, where prices are higher and require more wriggle room from sellers.
“Looking ahead, expectations of further base rate cuts and easing inflationary pressures should provide additional support and reignite growth. A market that is steady, more affordable, and gradually building confidence will surely help build momentum that benefits both buyers and sellers alike.”
Nicholas Finn, MD at Garrington Property Finders, added: “This is keeping price rises to a minimum, or even pushing prices down,’ said Finn. ‘In some areas the glut of supply is so acute that estate agents are refusing to list homes where they feel the owner is asking for an unrealistic price.
“The imbalance is greatest in southern England, but is no longer just limited to the capital and its commuter belt.
“Halifax’s data shows that the slowest rate of price growth is now in the South West – a reflection of the large numbers of second homes and holiday let properties being sold by their disenchanted owners.
“The net effect has been to turn the south into a buyer’s market – in which buyers can ask for, and with the right seller, get a significant reduction in asking price.”
Read the orginal article: https://propertyindustryeye.com/property-industry-reacts-to-latest-uk-house-price-data-14/
