A Mixed Picture, But the Market Remains Resilient
The latest house price reports for May 2025 suggest that the market remains stable, but growth has cooled slightly compared to earlier in the year.
Halifax House Price Index
The Halifax report showed a monthly fall of -0.1%, which is broadly unchanged. The annual growth rate has slowed from +1.5% in April to +1.2% in May, putting the average UK house price at £288,688.
Kim Kinnaird, Director at Halifax Mortgages, noted:
“The housing market has stabilised in recent months, supported by a healthier economic backdrop, but affordability remains a significant hurdle for many buyers.”
Nationwide House Price Index
Nationwide also reported a slight monthly decline of -0.2%, down from +0.4% the previous month. However, annual growth stood at +1.3%, suggesting modest resilience in values.
Chief Economist Robert Gardner said:
“Affordability remains stretched, but strong wage growth has helped support modest price increases. The outlook for the second half of the year will depend largely on interest rate expectations.”
You can view the full Nationwide report here.
Rightmove Asking Price Index
Asking prices are often more reflective of seller sentiment than actual transactions, and the latest Rightmove data shows a monthly increase of +0.8%, pushing the average asking price to £375,131, a new record.
Despite this, Rightmove noted that more realistic pricing is helping sales progress, particularly as many sellers are adjusting expectations.
Tim Bannister, Director of Property Science at Rightmove, said:
“There’s a record level of homes available for sale. This is good news for buyers, but it does put pressure on sellers to price correctly if they want to attract attention.”
Hometrack / Zoopla House Price Index
The latest Hometrack (Zoopla) data painted a slightly more cautious picture. Annual growth is now just -0.1%, although this varies significantly by region.
Richard Donnell from Zoopla added:
“The increase in homes for sale suggests growing confidence among sellers. However, more supply will keep prices in check, especially over the summer months as political events and holidays may dampen demand.”
Our Thoughts
While the monthly figures were fairly flat, the overall tone from all the main reports suggests the housing market is holding firm.
That said, the recent increase in mortgage rates may slow momentum in the short term. We’ve noticed a steady flow of enquiries from movers and first-time buyers, but some are understandably cautious—particularly with the upcoming General Election and changing economic conditions.
Although there are no signs of a sharp fall in prices, most experts agree that affordability constraints will likely limit significant price growth for now.
As always, if you’re planning a move this year, the best place to start is with good, honest advice. We’re here if you need us.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Information correct at time of writing – June 2025.
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