Key facts
- UK house prices increased by 0.2% in June to an average of £299,330.
- This marks the first monthly price gain since February.
- Easing mortgage rates are providing some support for demand.
- First-time buyer annual price growth rose to 0.8%.
- Prices declined year-on-year in the South East (-2%) and London (-1.1%).
- Northern England regions, particularly the North East (2.8%) and North West (2.4%), saw annual price growth.
UK house prices rose 0.2% in June to an average of £299,330, marking the first monthly increase since February. This gain followed a 0.2% drop in May. The easing of mortgage rates from recent highs, influenced by cooling inflation expectations partly due to the resolution of the Iran conflict, is seen as a key factor supporting the market. While affordability remains a challenge, lower borrowing costs offer encouragement to potential buyers. The annual growth rate edged up to 0.6%. First-time buyers demonstrated resilient demand, with annual price growth reaching 0.8% and the average property costing £240,433. Despite the national increase, property values continued to decline in the South East by 2% and London by 1.1% year-on-year. Conversely, northern regions of England experienced stronger growth, with the North East up 2.8% and the North West up 2.4%. Northern Ireland recorded the strongest annual growth at 7.4%.