UK house prices saw a modest increase in June following a slight fall in May, according to the Lloyds house price index. Regional variations remain significant, with Northern Ireland leading annual growth while London and the South East experienced declines.
The Lloyds house price index, previously known as the Halifax index, reported a 0.2% rise in average UK property prices in June, bringing the average value to £299,330. This follows a 0.2% decrease in May and marks the first monthly increase in four months.
House Price Trends and Economic Context
Annual house price growth edged up slightly from 0.5% in May to 0.6% in June, although prices over the latest quarter fell by 0.4%. The average price in May was £298,812, indicating a small but positive shift in the market.
Amanda Bryden, head of mortgages at Lloyds, commented: “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 anticipates that lower borrowing costs will stimulate buyer demand, despite ongoing affordability challenges.
Regional House Price Performance
Northern Ireland recorded the strongest annual growth at 7.4%, with average property prices reaching £229,000. Scotland followed with a 3.9% increase, pushing average prices to £223,277. Wales saw a modest 0.9% rise, with typical homes valued at £231,142.
In England, the North East experienced a 2.8% annual price increase to £181,133, and the North West saw a 2.4% rise to £248,218. Conversely, the South East recorded a 2% annual price decline, with the average property price falling to £381,654. London prices also dropped by 1.1% year on year, down to £534,831.
Industry Perspectives on the Market
Nathan Emerson, CEO of Propertymark, said: “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 monitor how this affects house prices over the summer.”
Amy Reynolds, head of sales at Antony Roberts estate agency, described the market as “broadly flat, with growth ticking along at a modest pace rather than reversing,” attributing this to elevated fixed-rate mortgage pricing influenced by lenders managing a surge in applications.
Jason Tebb, president of OnTheMarket, noted that “those who need to move continue to buy and sell homes,” with easing mortgage rates helping buyers adapt despite affordability concerns. He highlighted ongoing political uncertainty and economic challenges as a backdrop to market resilience.
Iain McKenzie, CEO of The Guild of Property Professionals, welcomed the return to monthly house price growth as a sign of market resilience amid economic challenges, observing cautious buyer confidence supported by relatively contained inflation and stable interest rate expectations.
Jeremy Leaf, a north London estate agent and former RICS residential chairman, remarked that property prices have held up well despite concerns over war impacts on living costs and energy prices, but noted that some sellers’ reluctance to accept new market realities is slowing transactions.
Tom Bill, head of UK residential research at Knight Frank, commented that house prices have plateaued and transactions declined due to higher mortgage rates following the Middle East conflict. He added that while geopolitical risks are easing, rising domestic political risks and ongoing speculation about property tax changes may suppress activity and prices this summer.
Practical support for TLA members amid market changes
In a market characterised by modest price growth and regional disparities, landlords and agents must stay vigilant in managing their property portfolios and compliance responsibilities. TLA’s new property management and compliance platform, ORBIT™, currently in BETA testing, is designed to help landlords organise property information, manage important documents, and keep track of compliance activity efficiently.
With affordability pressures and shifting market conditions, maintaining up-to-date records and documentation is essential. TLA membership offers access to practical guidance, compliance resources, and document support tailored to the evolving private rented sector. Members can explore TLA membership or learn more about ORBIT™ BETA access to help navigate these market developments.
TLA - The Landlord Association