The Halifax has helped 3,000 extra buyers to market thanks to relaxed affordability assessments, with around a third of those now able to access mortgages first-time buyers.
‘The market’s resilience continues to stand out and, 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’, said Halifax head of mortgages Amanda Bryden.
Commenting on the release of the building society’s monthly House Price Index, Bryden added:
“That’s being helped by a few key factors: wages are still rising, which is easing some of the pressure on affordability, and interest rates have stabilised in recent months, giving people more confidence to plan ahead.
“Lenders have also responded to new regulatory guidance by taking a more flexible approach to affordability assessments. Over the last two months, we’ve already helped an additional 3,000 buyers – including more than 1,000 first-time buyers – access a mortgage they wouldn’t have qualified for before.”
Although the Halifax reports house price growth remaining flat in June – at 0.0% after a dip of 0.3% in May – property and finance experts are welcoming the data as a sign of confidence in the market.
‘While headline growth may appear muted, the underlying picture is one of growing resilience and renewed momentum in activity’, said Iain McKenzie, CEO of The Guild of Property Professionals.
“We’re seeing a noticeable uplift in buyer and seller confidence, supported by falling mortgage rates and greater choice in the market. With dozens of mortgage deals now available below 4%, affordability is improving, especially for those entering or moving within the market. Importantly, this increased confidence is translating into action: transactions rebounded in May, mortgage approvals have surged, and the pace of agreed sales is at a four-year high.”
The uptick in first-time buyer numbers was also seen as a boost by experts and, according to Yopa CEO Verona Frankish, illustrative of a stable market. She commented:
“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.”
Anthony Codling, managing director of equity research at RBC Capital Markets, agrees. He said of the Halifax’s figures:
“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.”
Experts were also united on the remaining challenges, but agree that potential interest rate cuts could offer a boost in the coming months.
“Affordability is still stretched, particularly for those coming to the end of fixed-rate deals,’ Bryden commented.
“The economic backdrop also remains uncertain; while inflation has eased, it’s still above target, and there are signs the jobs market may be softening. But with markets pricing in two more rate cuts from the Bank of England by year end, and the average rate on newly drawn mortgages now at its lowest since 2023, we continue to expect modest house price growth in the second half of the year.”
McKenzie added:
“The Bank of England’s decision to hold rates last month reflected ongoing inflation concerns, but the signal that cuts may come as early as August is encouraging.
“If we see further reductions through the second half of the year, we expect this to inject fresh energy into the market heading into 2026. Overall, while price growth is flat, the fundamentals are shifting in a positive direction. The market is stabilising, confidence is building, and we’re entering the second half of the year on firmer ground.”
Regionally, Northern Ireland continues to record the fastest pace of annual property price inflation in the UK, rising 9.6% over the last year to take the average house price to £212,189.
On a monthly basis, Scotland recorded the next strongest annual house price growth in June, with an increase of 4.9% taking average prices to £214,891. Property prices in Wales were up 3.9%, to an average of £229,622, with the North West seeing the highest rate of property price inflation in the English regions – up 4.4% over the last year to £241,938.
The South West and London continue to see more subdued growth, with prices rising by just 0.5% and 0.6% respectively. However, the capital remains by far the most expensive part of the UK, with the average home now priced at £540,048.
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