UK house prices remained broadly stable in May despite ongoing economic and geopolitical uncertainty, according to the latest Halifax house price index (HPI).

Average property values edged down by 0.1% for a second consecutive month this year, leaving the typical UK home worth £298,806, compared with £299,251 in April. Annual house price growth, however, increased slightly to 0.5% from 0.4% the previous month.

"Overall activity has held up well, reflecting the underlying resilience of the UK housing market," said Amanda Bryden, head of mortgages at Halifax.

Among first-time buyers (FTBs), annual growth is more subdued at +0.3%.

“While getting onto the property ladder remains a big challenge, there has been increasing support from lenders, including more flexible affordability checks and a growing range of low-deposit options,” Bryden said.

Regional differences remain pronounced, with northern areas continuing to outperform the South. Northern Ireland recorded the strongest annual growth in the UK at 7.8%, taking average prices to £227,177. Scotland saw annual growth of 3.8%, while the North East and North West of England posted increases of 3.1% and 3.0% respectively.

By contrast, southern markets remained under pressure. House prices in the South East fell 2.1% year-on-year, while London recorded a 1.5% decline, leaving average values at
£534,375.

Mortgage approvals for house purchases rose 3.1% in April to 65,945, the highest level since January 2025 and 9.0% higher than a year earlier. However, HMRC data showed residential transactions fell 3% month-on-month in April.

“Looking ahead, borrowing costs and consumer confidence are likely to continue shaping activity in the coming months, with house prices expected to remain broadly stable while interest rates stay elevated. The housing market remains closely tied to wider global developments, with a return to sustained house price growth dependent on an improvement in the inflation outlook and a fall in mortgage costs,” Bryden added.

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