The Halifax is warning that the second half of 2025 will see what it calls “a notable rise” in home owners coming to the end of fixed rate deals.

Many such deals were taken out during the pandemic period, when interest rates hit rock bottom and house prices increased, especially as buyers fled urban areas.

Halifax head of mortgages Amanda Bryden says: “While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households. 

“Those coming off a two year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget. 

“We’re unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets.”

Her comments come alongside the latest house price index from Halifax. It shows that the average house price across the UK is now £298,237, +2.4% higher than a year ago.

The North West, and Yorkshire and the Humber saw the strongest growth in England – up 4% in a year, while prices in the South West rose just 0.2%.

Here’s the regional breakdown in detail:

Northern Ireland continues to be the strongest performing nation or region in the UK – house prices here increased by +9.3% over the past year. The typical home now costs £214,832.

Scotland also recorded positive house price growth in July, increasing by +4.7% with average prices now at £215,238.

Property prices in Wales saw a rise, up +2.7%, to an average of £227,928.

Among English regions, the North West and Yorkshire & the Humber have the highest rate of property price inflation, up +4.0% over the last year to £242,293 and £215,532 respectively.

The South West, London and the South East continue to see moderate growth, with prices rising by just +0.2% and +0.5% respectively. London remains the most expensive part of the UK, now averaging £539,914.