The UK housing market is showing early signs of stabilising after months of modest price decline, according to the latest e.surv House Price Index. Average property values in England and Wales held steady in June, with experts pointing to easing affordability rules and the potential for interest rate cuts as key drivers of renewed optimism. While prices remain slightly lower than a year ago, improving sentiment and a pick-up in mortgage approvals could support a stronger finish to 2025. London, in particular, appears to be turning a corner after a prolonged slowdown.
- Average house prices in England and Wales were broadly unchanged in June at just under £358,000.
- Prices are currently 1.3% lower year-on-year, with declines appearing to have levelled off.
- Easing mortgage affordability rules and rate cut speculation are supporting buyer demand.
- The Bank of England held interest rates at 4.25% in June, with rumours of a cut later this year.
- Stamp duty threshold changes are now seen to be stabilising transactions, particularly in London.
Original article source: Property118
While the past year has seen a subdued housing market, June’s data offers a welcome signal – the tide may be turning. With prices broadly flat and no sharp monthly drops, we’re seeing the early markers of renewed confidence and not a surge.
The stabilisation comes at a moment when macro conditions may be shifting. If the Bank of England moves to cut rates later this year, the effect could be twofold: strengthening buyer appetite and softening affordability constraints that have weighed on the mid-market. Even without a rate change, the mere expectation of lower borrowing costs is already influencing buyer behaviour.
London’s performance is also worth noting. After a sustained period of underperformance, the capital’s minimal negative drag in May is its best result in a year and a half. For landlords and international buyers, this may mark the start of a more predictable pricing environment – particularly attractive when paired with currency plays and falling competition from overstretched domestic bidders.
Stamp duty changes, initially viewed as a deterrent, appear to be having a steadying effect. That will matter heading into the final quarter of 2025, when transactional momentum tends to rise. If mortgage approvals and sentiment continue to lift in parallel, we could be looking at a firmer close to the year than many had forecast just months ago.
This may be a floor and not a boom. And for long-term investors, stable ground often presents better buying conditions than a runaway rally.
