House price growth stayed flat in June, following a month-on-month dip of 0.3% in May, the latest Halifax House Price Index has shown.

The group reported that the latest annual rate of growth edged down to 2.5%, from 2.6% in May, leaving the average property price at £296,665 in June.

Halifax said that the housing market’s resilience continues to “stand out”, and after a brief slowdown that followed the stamp duty changes in April, mortgage approvals and property transactions have both picked up, with more buyers returning to the market.

Head of mortgages at Halifax, Amanda Bryden, suggested that this was 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,” Bryden said.

“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.

“Of course, challenges remain. Affordability is still stretched, particularly for those coming to the end of fixed-rate deals. 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.”

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