Average house prices remained broadly stable in May, with a slight fall of -0.1% matching that seen in April.

That’s according to the Halifax.

It says the typical property now costs £298,806, while the pace of annual growth edged up slightly to +0.5%.

Among first‑time buyers, annual growth is more subdued at +0.3%. 

The lender says price trends continue to reflect the uncertainty linked to developments in the Middle East. 

Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand.

Amanda Bryden, head of mortgages at the lender, says: “Overall activity has held up well, reflecting the underlying resilience of the UK housing market. 

“Latest industry figures show transaction levels remain relatively stable, suggesting buyers and sellers are still moving.”

Bryden continues: “While getting onto the property ladder remains a big challenge, there has been increasing support from lenders, including more flexible affordability checks and a growing range of low‑deposit options.

“Looking ahead, borrowing costs and consumer confidence are likely to continue shaping activity in the coming months, with house prices expected to remain broadly stable while interest rates stay elevated. 

“The housing market remains closely tied to wider global developments, with a return to sustained house price growth dependent on an improvement in the inflation outlook and a fall in mortgage costs.”