UK House Prices Post Smallest Gain in a Year

The Halifax House Price Index in the UK rose by 2.4% year-on-year in July 2025, easing from the 2.7% gain in June and marking the softest annual increase since July 2024. On a monthly basis, prices climbed 0.4%, the strongest rise since the start of the year, and exceeded expectations of a 0.3% gain. The average property value increased to £298,237, up from £297,157 in June. Amanda Bryden, Head of Mortgages at Halifax, said the market is showing resilience, supported by easing mortgage rates, rising wages, and more flexible affordability checks. She expects modest price gains through the rest of the year. A wave of borrowers is also set to exit pandemic-era fixed-rate deals in the H2 of 2025. While some will face higher repayments, others may benefit from lower costs depending on when they are locked in their rates. Regionally, Northern Ireland led with a 9.3% annual increase. Scotland, Wales, and parts of northern England also recorded solid growth.