º£½ÇÊÓƵ house prices experienced a slight decline in May following a drop in market activity after the stamp duty holiday concluded earlier this year, as per the latest figures from Halifax.
Prices dipped by 0.4 per cent in May, having previously increased by 0.3 per cent in April, setting the average º£½ÇÊÓƵ home value at £296,648, as reported by .
The yearly growth rate also decelerated to 2.5 per cent from April's 3.2 per cent.
"These small monthly movements point to a housing market that has remained largely stable... I.T. appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty," commented Amanda Bryden, Head of Mortgages at Halifax.
First-time buyers had notably increased their activity, eager to benefit from temporarily reduced taxes on their initial property purchase before the two-year policy concluded in March.
Estate agents are now suggesting that future house price trends will be heavily influenced by inflation and decisions made by the Bank of England.
"The key challenge is affordability – mortgage rates, higher stamp duty and for some, the increase in private school fees, is affecting many families who would like to move but are unable to," stated Amy Reynolds, head of sales at Richmond-based estate agency Antony Roberts.
Rising interest rates hit house prices
Interest rate hikes have begun to impact house prices, with the latest statistics from the Bank of England indicating a 4.9 per cent decrease in the number of mortgages approved for house purchases in April 2025, down to 60,463.
Mark Harris, CEO of SPF Private Clients, remarked: "The cheapest fixed-rate mortgages have started rising again with the trajectory of swap rates, which underpin their pricing, suggesting further mortgage rate increases in the short term.
"However, rates are only part of the picture. The easing of criteria and changes to mortgage stress tests by lenders such as Nationwide and NatWest, following changes to Bank of England guidance in March, means tens of thousands of pounds of extra borrowing may now be available to house buyers."
Property analysts at Savills predict that more relaxed mortgage lending regulations may lead to a 25% rise in deals for first-time buyers within the next five years.
Lucian Cook of Savills stated: "The outlook will depend on the pace of cuts to interest rates, as well as the strength of future income growth and broader inflation trends."
Bryden from the same firm added: "Despite ongoing pressure on household finances and a still-uncertain economic backdrop, the housing market has shown resilience – a story we expect to continue in the months ahead."
