UK house prices increase 0.2% in June as annual growth improves

British house prices increased by 0.2% in June, marking the first monthly rise in four months, while annual growth accelerated slightly to 0.6%, according to data released by mortgage lender Lloyds on Tuesday.

The latest figures showed that the average UK property price reached £299,330 during the month.

The increase follows several months of weaker price performance and comes amid continued economic uncertainty.

First monthly increase in four months

According to the Lloyds House Price Index, house prices rose by 0.2% in June compared with May.

The annual rate of house price growth also edged higher to 0.6%.

Amanda Bryden, Head of Mortgages at Lloyds, said recent trends continued to reflect broader economic conditions.

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

Bryden added that wider economic uncertainty continued to shape the housing market.

She also said,"Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations."

Regional performance remains mixed

The Lloyds House Price Index showed that Northern Ireland continued to record the strongest annual house price growth across the UK.

Average house prices in Northern Ireland increased by 7.4% over the past year to £229,000.

In Wales, annual house price growth strengthened to 0.9%, taking the average property value to £231,142.

Within England, stronger price growth remained concentrated in northern regions.

The North East recorded annual price growth of 2.8%, with the average property priced at £181,133.

The North West followed with an annual growth of 2.4%, lifting the average home price to £248,218.

However, southern regions continued to experience weaker price performance.

The South East recorded the sharpest annual decline, with house prices falling 2.0% year-on-year to £381,654.

London also remained under pressure, with average property values declining 1.1% from a year earlier to £534,831.

Mortgage approvals decline

Separate data from the Bank of England indicated that mortgage approvals for house purchases fell during May, suggesting housing market activity softened following earlier gains.

Mortgage approvals declined by 14.9% to 56,205 in May 2026.

On a year-on-year basis, approvals were 10.8% lower than in May 2025, seasonally adjusted.

The decline in approvals points to slower buyer activity despite mortgage rates easing from recent highs.

The Lloyds house price index, formerly known as the Halifax house price index, is the UK's longest-running monthly house price series, with nationwide data dating back to January 1983.

The index calculates a standardised house price and analyses like-for-like property price movements over time, incorporating seasonal adjustments.