Average UK house prices fell by -0.4% in May, according to Halifax’s latest House Price Index, after changes to Stamp Duty came to effect in April.
Prices dipped by around £1,150, with the average price of a home in the UK falling from £297,798 in April to £296,648 in May. Annual house price growth slowed to 2.5%, down from 3.2% in April.
Amanda Bryden, head of mortgages at Halifax, said: “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."
Looking ahead, the bank said that it expected prices to remain relatively stable over the coming year, but said the outlook will depend on the pace of rate cuts, broader inflation trends and future income growth.
Northern Ireland retains price growth top spot
Northern Ireland continues to lead the UK in house price growth, outpacing Wales, Scotland and England.
Prices in Northern Ireland are up 8.6% over the past year, with the average price of a home there now at £209,388.
Wales and Scotland have also seen strong growth over the year, with prices in both countries rising by 4.8% over the year, to an average of £230,405 and £214,864 respectively.
London remains the most expensive region of the UK to buy a home, with the price of an average home now at £542,017. However, the capital has seen some of the slowest price growth, with prices up just 1.2% year-on-year.
