8:02 AM, 8th July 2026, 2 hours ago
The Lloyds house price index, formerly the Halifax index, shows the average UK property price rose by 0.2% in June to £299,330, after a 0.2% fall in May.
Annual price growth also moved up slightly, from +0.5% in May to +0.6% in June, while prices over the latest quarter were down -0.4%.
The increase was the first monthly rise in four months, with the average price up from £298,812 in May.
Amanda Bryden, the head of mortgages at Lloyds, said: “Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations.
“While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move.”
She also predicts that lower borrowing costs will boost buyer demand, though more are seeing affordability issues.
Regional house prices
The lender says that Northern Ireland recorded the strongest annual house price growth, with average values up 7.4% over the year to £229,000.
Scotland followed with annual growth of 3.9%, taking the average property price to £223,277.
In Wales, annual property price growth strengthened by 0.9%, with the typical home now valued at £231,142.
In England, the North East saw prices rise 2.8% over the year to £181,133, while the North West recorded annual growth of 2.4%, taking the average property price to £248,218.
The South East recorded a 2% annual fall, with the average price now £381,654.
London values were also lower, down 1.1% year on year to £534,831.
Property sector reaction to the Lloyds house price index
Nathan Emerson, the CEO of Propertymark, said: “When taking a broad view of the property market and the wider economy, it is encouraging to see average UK house prices deliver growth, both month on month and year on year.
“However, with Bank of England data showing mortgage borrowing has fallen for a second consecutive month, it will be important to keep close check on how this affects house prices over the summer.”
Amy Reynolds, the head of sales at Richmond estate agency Antony Roberts, said: “The market is broadly flat, with growth ticking along at a modest pace rather than reversing.
“That’s exactly what you’d expect while fixed-rate mortgage pricing has been sitting at an artificially elevated level, driven as much by lenders managing a surge in applications as by the underlying economics.”
Jason Tebb, the president of OnTheMarket, said: “Those who need to move continue to buy and sell homes. Affordability concerns remain but easing mortgage rates are helping, as borrowers adapt to shifting market conditions.
“Political uncertainty and challenging economic conditions continue to form a backdrop, but the resilience of the market and the needs-based buyers and sellers who have no choice but to proceed, is evident.”
Iain McKenzie, the CEO of The Guild of Property Professionals, said: “The return to monthly house price growth is an encouraging sign that the market continues to demonstrate resilience despite a challenging economic backdrop.
“Buyers remain cautious, but we’re seeing confidence gradually improve as inflation remains relatively contained and expectations for interest rates have become more stable.”
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Property prices have held up surprising well, bearing in mind continuing concerns about the impact of war on the cost of living and energy prices, as well as mortgage rates in particular.
“However, we are finding reluctance of some owners to recognise the new market realities of reduced confidence and difficulty of generating offers is holding back transactions.”
Tom Bill, the head of UK residential research at Knight Frank, said: “House prices are going sideways and transactions are falling as the result of higher mortgage rates since the start of the Middle East conflict.
“The good news is that geopolitical risks are subsiding as both sides move gradually towards a ceasefire and mortgages are edging lower.
“The bad news is that domestic political risks are rising and various trial balloons about changes to property taxation are being floated for the third consecutive year, which will keep a lid on activity and prices this summer.”
