FX.co ★ UK House Price Growth Slows to 10-Month Low

The Halifax House Price Index for the UK reported a 2.5% increase year-on-year in May 2025, marking the smallest annual gain in the past ten months and reflecting a decrease from the 3.2% rise observed in April. On a month-to-month basis, prices declined by 0.4%, counteracting a 0.3% increase recorded in April. The average property price now stands at £296,648, down from £297,798 in the previous month. "These slight monthly shifts indicate a largely stable housing market, with average prices having decreased by just 0.2% since the beginning of the year. The market seems to have adapted to the temporary uptick in activity experienced during the spring, driven by changes in stamp duty. Affordability continues to pose a challenge, as house prices remain elevated in relation to income levels. Nevertheless, reduced mortgage rates coupled with steady wage growth have bolstered buyer confidence. Moving forward, the market outlook will hinge on the pace of interest rate cuts, the robustness of future income growth, and broader inflationary trends," stated Amanda Bryden, Head of Mortgages at Halifax.