9:22 AM, 6th June 2025, About a month ago
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The UK’s house prices saw a slight drop of 0.4% in May, following a modest 0.3% rise in April, according to Halifax.
The average property price now stands at £296,648, down by £1,150 from £297,798 last month.
Despite this dip, the housing market has remained largely stable throughout 2025, with prices only 0.2% lower since January, the lender says.
Annual price growth has slowed to 2.5% from 3.2% in April, adding roughly £7,000 to the value of a typical home.
Amanda Bryden, the head of mortgages at Halifax, said: “The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty.
“Affordability remains a challenge, with house prices still high relative to incomes.
“However, lower mortgage rates and steady wage growth have helped support buyer confidence.”
He added: “The housing market has shown resilience – a story we expect to continue in the months ahead.”
Northern Ireland continues to outshine other UK regions, recording an 8.6% annual price increase, with the average home now valued at £209,388 — still significantly below the UK average. Wales and Scotland also demonstrated robust growth, with prices rising by 4.8%, reaching £230,405 and £214,864, respectively.
In England, the North West and Yorkshire and the Humber led with 3.7% yearly increases, bringing average property values to £240,823 and £213,983, respectively.
London, however, saw more restrained growth at 1.2%, though it remains the priciest region, with homes averaging £542,017.
Matt Thompson, head of sales at Chestertons, said: “Some house hunters paused their search amid the Easter holidays in April but were quick to resume their activity in May.
“Buyer motivation was then boosted further by the Bank of England’s decision to cut interest rates to 4.25%.
“As the majority of sellers have been eager to move themselves, there has been a steady flow of agreed sales in May and, as buyer demand remains strong, we expect a busier than usual summer market.”
Nathan Emerson, Propertymark‘s chief executive, said: “This slight dip in house prices will likely have been influenced as a direct consequence to the current state of the global economy.
“There will always be a need for people to move house regardless of international trading relations; however, many aspiring or current homeowners will no doubt be discouraged until they feel confident in their long-term affordability.”
Tom Bill, the head of UK residential research at Knight Frank, said: “Demand was frontloaded this year thanks to April’s stamp duty deadline, which means house prices are coming under downwards pressure as buyers still in the market have a lot to choose from.
“While activity will eventually pick up, concerns around inflation and the government’s tight financial headroom mean mortgage rates don’t feel poised to drop meaningfully.
“We expect UK growth of 3.5% in 2025, which suggests the direction of travel for prices will be largely sideways.”
