UK house prices rose in June for the first time since start of Iran war; borrowing costs eased, Lloyds index shows.

UK house prices rose 0.2% in June, the first increase in four months, as borrowing costs eased, according to the Lloyds house price index. The average property price now stands at £299,330, up from £298,812 in May, with annual growth edging up to 0.6% from 0.5% in May.¹²⁵

Amanda Bryden, head of mortgages at Lloyds, noted, “Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations.” Despite affordability challenges, mortgage rates have eased, providing some relief for potential buyers.

First-time buyer prices rose at a faster annual rate of 0.8% in June, compared to 0.3% in May, with the average first-time buyer property costing £240,433. Regional data revealed Northern Ireland as the strongest performer, with prices up 7.4% year-on-year to an average of £229,000.

In contrast, the southeast saw the sharpest annual decline, with prices down 2% to £381,654, while London prices fell 1.1% year-on-year, averaging £534,831.

Anthony Codling from RBC Capital Markets remarked, “June’s data offers a tentative but welcome signal that the market is finding its footing.” The outlook remains cautious, with experts suggesting that lower borrowing costs could support demand if inflation eases and household confidence improves.