UK House Prices Rise 0.2% in June as Mortgage Rates Ease

UK house prices rose by 0.2% in June, marking the first monthly increase since February and exceeding expectations of a 0.1% rise. According to the latest index from Lloyds Banking Group, the average property now costs £299,330, with the annual growth rate edging up to 0.6% from 0.5% in May. This data marks the first release of the house price index under the Lloyds brand following the decision to scrap the Halifax brand after 173 years.

Regional performance varied, with Northern Ireland seeing the strongest annual growth at 7.4%, followed by Scotland at 3.9%. Conversely, prices continued to decline in London, the South East, and the South West. Overall, house prices for the second quarter of 2026 fell by 0.4%.

Analysts attribute the recent volatility to economic uncertainty and interest rate spikes triggered by the February 2026 conflict involving the United States, Israel, and Iran, as well as the subsequent closure of the strait of Hormuz. Market experts note that while affordability remains stretched, the easing of mortgage rates from recent highs is providing encouragement to borrowers. Industry leaders suggest the market is demonstrating resilience, though buyers continue to negotiate firmly to avoid overpaying in an uncertain climate.