Halifax House Price Index – July

House prices increased by +0.4% in July, the highest since the start of the year
Average property price now £298,237 compared to £297,157 last month
Annual rate of growth +2.4% (vs +2.7 in June)
Northern Ireland continues to record the strongest annual price growth in the UK

Amanda Bryden, Head of Mortgages, Halifax, said:

“UK house prices rose in July, up by +0.4% (£1,080 in cash terms), the biggest monthly increase since the start of this year. The average house price is now £298,237, +2.4% higher than a year ago.

“While the national average remains close to a record high, it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type.

“Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.

“Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.

“We expect house prices to follow a steady path of modest gains through the rest of the year.”

Homeowners coming to the end of fixed-rate mortgage deals Amanda continues:

“The second half of this year will also see a notable rise in homeowners coming to the end of fixed-rate deals taken out during the pandemic-era property boom; a period marked by ultra-low interest rates and soaring house prices.

“While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households. Those coming off a two year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget. We’re unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets.”

Nations and regions house prices

Northern Ireland continues to be the strongest performing nation or region in the UK- house prices here increased by +9.3% over the past year. The typical home now costs £214,832.

Scotland also recorded positive house price growth in July, increasing by +4.7% with average prices now at £215,238.

Property prices in Wales saw a rise, up +2.7%, to an average of £227,928.

Among English regions, the North West and Yorkshire & the Humber have the highest rate of property price inflation, up +4.0% over the last year to £242,293 and £215,532 respectively.

The South West, London and the South East continue to see moderate growth, with prices rising by just +0.2% and +0.5% respectively. London remains the most expensive part of the UK, now averaging £539,914.

Housing activity

HMRC monthly property transaction data show UK home sales increased in June 2025. UK seasonally adjusted (SA) residential transactions in June 2025 totalled 93,530 – up by +13.4% from May’s figure of 82,510 (up +16.6% on a non-SA basis). Quarterly SA transactions (April 2025 – June 2025) were approximately -37.0% lower than the preceding three months (January 2025 – March 2025). Year-on-year SA transactions were +1.3% higher than June 2024 (+4.6% higher on a non-SA basis). (Source: HMRC)
Latest Bank of England figures show the number of mortgages approved to finance house purchases increased in June 2025 by +1.4% to 64,167. Year-on-year the figure was +5.6% above June 2024. (Source: Bank of England, seasonally-adjusted figures)
The RICS Residential Market Survey results for June 2025 indicate a steadier sales market, with buyer enquiries moving out of negative territory for the first time since January 2025. New buyer enquiries recorded a net balance of +3%, up from -22%. Agreed sales improved to -3%, compared to -25% and -28% previously. New instructions recorded a net balance of +3% (+7% previously). (Source: Royal Institution of Chartered Surveyors (RICS) monthly report)