7th Jul 2026 07:18
(Alliance News) - UK house prices rose for the first time in four months in June, as easing mortgage rates offered some support to buyers despite ongoing affordability pressures, according to the Lloyds house price index.
The Halifax house price index has been rebranded as the Lloyds house price index from July. Lloyds Banking Group PLC said the change is in name only, with the methodology remaining unchanged. The index has long been calculated using mortgage data from both Lloyds Bank and Halifax, which is a division of Bank of Scotland within Lloyds Banking Group.
Lloyds said the average UK house price increased 0.2% in June to GBP299,330 from GBP298,812 in May, reversing a 0.2% monthly fall the previous month and beating the FXStreet-cited market consensus of a 0.1% rise.
The pace of annual house price growth edged up to 0.6% in June from 0.5% in May. On a quarterly basis, however, prices were down 0.4%.
"Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations," Amanda Bryden, head of mortgages at Lloyds. "While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move."
Bryden noted that mortgage approvals fell in May following the earlier rise in borrowing costs but said Lloyds expects activity to recover if rates continue to decline.
For first-time buyers, annual house price growth accelerated to 0.8% in June from 0.3% in May. The average first-time buyer property now costs GBP240,433.
"Looking ahead, we expect the housing market to continue moving at a measured pace," Bryden said. "Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor. The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving."
Regionally, Northern Ireland remained the strongest-performing UK market, with annual house price growth of 7.4%, taking the average property value to GBP229,000.
Scotland recorded the second-fastest annual increase at 3.9%, with average prices reaching GBP223,277, while prices in Wales rose 0.9% on the year to GBP231,142.
Within England, growth remained strongest in northern regions. House prices in the North East increased 2.8% annually to GBP181,133, while the North West recorded growth of 2.4%, lifting the average price to GBP248,218.
Southern markets continued to lag, with house prices in the South East falling 2.0% from a year earlier to GBP381,654. London prices declined 1.1% to an average of GBP534,831.
By Eva Castanedo, Alliance News senior economics reporter
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