The latest Halifax Price index has been released.  It can be seen here, and in summary:

Headline Findings (May 2025):

• Monthly Change:
  House prices fell by 0.4% in May, reversing April’s 0.3% increase.

• Annual Growth:
  Slowed to 2.5%, down from 3.2% in April.

• Average UK House Price:
  Now £296,648.

• Regional Highlights:

  • Northern Ireland: +8.6% YoY – fastest growth.

  • Wales & Scotland: Both +4.8% YoY.

  • North West & Yorkshire and the Humber: Both +3.7% YoY.

    • Avg. prices: £240,823 and £213,983 respectively.

  • London: +1.2% YoY – slowest growth, but still the highest average price at £542,017.

Key Drivers & Commentary:

• Stamp Duty Changes:
  April’s drop in thresholds led to frontloaded demand; May’s price dip reflects market cooling as this demand eased.

• Market Stability:
  Prices have declined just 0.2% since January, indicating resilience, according to Halifax’s Amanda Bryden.

• Affordability Pressures:
  Despite high prices relative to income, steady wages and lower mortgage rates are helping maintain buyer confidence.

• Future Outlook:

  • Interest rate cuts, income growth, and inflation trends will heavily influence the next phase.

  • Knight Frank expects “sideways” price movement in the near term but 3.5% growth in 2025 overall.

Summary Analysis:

The housing market is entering a phase of stabilisation after a stamp duty-driven spring bump. Prices are softening slightly, but annual growth remains positive, especially outside of London. Affordability and interest rate decisions will be key to watch, with the second half of 2025 likely to be shaped by broader economic shifts rather than policy-driven demand spikes.