House prices rose for the first time in four months, according to Lloyds, as mortgage rates began to ease.
House prices increased in June for the first time in four months, providing further evidence that the UK housing market is showing signs of stabilising as mortgage rates begin to fall.
According to the latest Lloyds House Price Index, published on 7 July, the average UK property price rose by 0.2% during June to £299,330, up from £298,812 in May. Annual house price growth also edged higher to 0.6%, compared with 0.5% the previous month.
The report suggests that while affordability remains a challenge for many buyers, lower mortgage rates are beginning to boost confidence and could encourage more people to move home over the coming months.
Amanda Bryden, Head of Mortgages at Lloyds, said the market remains influenced by wider economic uncertainty, including inflation and interest rate expectations, but added that easing mortgage rates are providing some encouragement for buyers.
She also noted that although mortgage approvals fell in May following earlier increases in borrowing costs, activity is expected to recover if rates continue to decline. Encouragingly, demand from first-time buyers appears resilient, with annual house price growth in this sector increasing to 0.8% during June.
Regional picture remains mixed
The strongest house price growth continues in Northern Ireland, where average property values have risen by 7.4% over the past year. Scotland recorded annual growth of 3.9%, while the North East (2.8%) and North West (2.4%) also performed strongly.
In contrast, southern England continues to experience weaker price growth. The South East saw annual prices fall by 2%, while London recorded a 1.1% decline compared with the same time last year.
What does this mean for buyers?
The latest figures suggest that conditions may gradually become more favourable if borrowing costs continue to ease. However, affordability remains a key consideration, making it more important than ever to secure the right mortgage for your personal circumstances. Whether you're buying your first home, moving, remortgaging or investing in property, it’s advisable to speak to an experienced broker. We're here to help.