Key facts
- Average UK property prices increased by 0.2% in June to £299,330.
- Mortgage rates have softened from recent highs, offering encouragement to buyers.
- First-time buyer prices saw a significant jump of 0.8%.
- House prices in the South East and London continued to weaken.
- Northern regions of England experienced price growth, boosting the national average.
UK house prices experienced a slight increase in June, with the average property value rising by 0.2% to £299,330, according to the Lloyds house price index. This marks the first monthly rise in four months, following a 0.2% fall in May. The easing of mortgage rates, which had previously spiked due to fears surrounding the Iran war and inflation, is credited with supporting this recovery.
Lenders, including Nationwide, have reduced their home loan prices in recent weeks as geopolitical tensions cooled inflation concerns. Lloyds noted that while affordability remains a challenge for many buyers, the softening borrowing costs provide some encouragement. The annual rate of price growth also edged up to 0.6%, with a notable 0.8% increase in prices for first-time buyers suggesting a rebound in demand.
Despite the national uptick, property markets in the South East and London continued to show weakness, with average prices falling by 2% and 1.1% respectively. In contrast, England's northern regions saw robust growth, with the North East up 2.8% and the North West up 2.4%, contributing to the overall national average.
Industry experts are also anticipating potential impacts on the property sector from a change in political leadership, with attention turning to the housing policies of potential new prime ministers. Concerns have been raised that a focus on devolution could exacerbate the existing divide between property markets in the North and South of England.