UK Average House Price Rises 0.2 Percent in June but Annual Growth Remains at 0.6 Percent

The average UK house price rose 0.2 percent month on month in June, the first monthly increase since February, according to data from Lloyds. The typical property now costs £299,330, while annual house-price growth accelerated to 0.6 percent from 0.5 percent in May. Amanda Bryden, head of mortgages at Lloyds, said house prices rose for the first time in four months during June.

She noted that recent price trends reflect wider economic uncertainty, including the impact of global events on inflation and interest-rate expectations, while mortgage rates have eased from recent highs. Regional figures showed the strongest annual gains in Northern Ireland at 7.4 percent, followed by Scotland at 3.9 percent and the North East at 2.8 percent.

London recorded a 1.1 percent annual decline, with the South East down 2.3 percent.

Tom Bill, head of UK residential research at Knight Frank, said house prices are going sideways and transactions are falling as a result of higher mortgage rates since the start of the Middle East conflict. Iain McKenzie, chief executive of The Guild of Property Professionals, described the return to monthly growth as an encouraging sign of market resilience.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said lenders are slowly reducing mortgage rates.

Nicky Stevenson, managing director at Fine & Country, called the 0.2 percent monthly increase modest but no bad thing in the current climate. Jason Tebb, president of OnTheMarket, said those who need to move continue to buy and sell homes. The long-running house price index has previously been released under the Halifax brand.