It’s the first monthly increase in four months, following a 0.2% fall in May, and takes the average property price to £299,330, up from £298,812 the month before

UK house price growth edged higher in June, with prices rising by 0.2% during the month, according to the latest Lloyds House Price Index (formally Halifax HPI).

It’s the first monthly increase in four months, following a 0.2% fall in May, and takes the average property price to £299,330, up from £298,812 the month before.

Annual house price growth also strengthened, climbing to 0.6% in June from 0.5% in May, even as the quarterly figure slipped to -0.4%.

Amanda Bryden, head of mortgages at Lloyds, said the uptick reflected a modest recovery after a difficult spring.

House prices rose for the first time in four months during June, increasing by +0.2%, compared to May, said Amanda Bryden, head of mortgages at Lloyds. The typical property now costs £299,330, while the annual rate of growth also edged higher to +0.6%.

Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations, she noted. 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 pointed to a slowdown in lending activity.

While latest industry data shows the number of new mortgage approvals dropped in May, this wasn’t unexpected given the spike in rates seen earlier this year, and we’d expect to see activity recover assuming borrowing costs continue to fall, she explained.

First-time buyers, meanwhile, appear undeterred. For first-time buyers, annual price growth increased to +0.8% in June from +0.3% in May, with the average first-time buyer property now costing £240,433, suggesting demand remains resilient, Bryden added.

Looking further ahead, she struck a cautious note.

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, she said.