UK house prices recorded their first month-on-month increase in four months during June, an index has revealed.
Property values typically rose by 0.2 per cent last month, marking the first such rise since February, according to Lloyds.
Annual house price growth also accelerated, reaching 0.6 per cent in June, up from 0.5 per cent in May. The average UK property value stood at £299,330.
Amanda Bryden, head of mortgages at Lloyds, said: “House prices rose for the first time in four months during June, increasing by 0.2 per cent, compared to May.
“The typical property now costs £299,330 while the annual rate of growth also edged higher to 0.6 per cent.
“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 added: “Looking ahead, we expect the housing market to continue moving at a measured pace.
“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.”
Tom Bill, 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.”
Iain McKenzie, chief executive officer 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.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Lenders continue to slowly chip away at their mortgage rates, which is giving hope to borrowers and encouraging activity.
“However, buyers are not getting carried away – the small uptick in average house prices indicates that buyers are negotiating hard and not willing to pay more than they need to.
“First-time buyers will be encouraged as house prices remain steady rather than soar.”
Nicky Stevenson, managing director at Fine & Country, said: “A monthly increase of 0.2 per cent is modest, but that is no bad thing in the current climate.
