Latest Halifax house price data shows a 1.3% increase
Here are some thoughts from the Industry
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), comments:
“The latest Halifax House Price Index confirms that average property values have remained above the £300,000 mark for the second consecutive month, reinforcing the resilience of the UK housing market. Sustained pricing at this level signals continued buyer confidence, despite affordability pressures and wider economic uncertainty.
“However, while rising prices may reflect market strength, they also present clear challenges. Without meaningful support for those stepping onto the housing ladder, higher property values will inevitably push up deposit requirements and borrowing thresholds. As prices remain above £300,000, aspiring first-time buyers face a growing hurdle in saving for larger deposits, making access to homeownership increasingly difficult.”
Daniel Austin, CEO and co-founder at ASK Partners, said:
“Today’s rise in UK house prices points to underlying resilience, but momentum remains constrained by affordability pressures and a ‘higher for longer’ interest rate backdrop. While recent rate cuts signal easing inflation, they are unlikely to transform market conditions overnight. Mortgage pricing has improved, yet buyer and developer confidence remains fragile following a Budget that offered little direct stimulus for housing.
“The market is increasingly being shaped by structural rather than cyclical forces. The UK’s forecast 1.4 per cent growth rate, relative outperformance versus the eurozone, and sustained interest from Gulf and Southeast Asian capital continue to support long-term confidence. However, mainstream buyer activity remains subdued, with demand instead flowing into structurally undersupplied rental markets, particularly build-to-rent and co-living in well-connected suburban and commuter locations.
“While proposed planning and affordable housing reforms may improve scheme viability at the margin, elevated construction and financing costs will continue to pressure margins in the near term. A clearer downward path for rates towards the 3.5 per cent range would help unlock stalled projects. Until then, capital is favouring resilient, income-led segments such as logistics, data centres, storage and other operational real estate, with real estate debt offering an attractive way to generate secured income while managing downside risk in a still-cautious market.”
Tom Brown, Managing Director, Real Estate at Ingenious, said:
“Today’s data underscores the resilience and continued appeal of the UK property sector. There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
“At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”
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