United Kingdom House Price Index YoY

The Halifax House Price Index in the UK increased 2.5% yoy in May 2025, the smallest gain in ten months, easing from a 3.2% rise in April. Compared to the previous month, prices decreased 0.4%, reversing a 0.3% rise in April, following the stamp duty tax hike. The average property price now stands at £296,648 compared to £297,798 in April. "These small monthly movements point to a housing market that has remained largely stable, with average prices down by just -0.2% since the start of the year. The market appears to have absorbed the temporary surge in activity over spring, which was driven by the changes to stamp duty. Affordability remains a challenge, with house prices still high relative to incomes. However, lower mortgage rates and steady wage growth have helped support buyer confidence. 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", Amanda Bryden, Head of Mortgages, Halifax, said.