House prices across the United Kingdom recorded their first monthly gain since the beginning of the Iran conflict, according to new data from the Lloyds house price index. The typical property was valued at £299,330 in June, representing a 0.2% increase from May, though prices remain slightly below levels recorded earlier in the year at £300,283 in January and £301,051 in February.
The annual growth rate for house prices edged upward to 0.6% in June from 0.5% the previous month. Amanda Bryden, head of mortgages at Lloyds, attributed ongoing price trends to wider economic uncertainty stemming from global events affecting inflation and interest rate expectations. She noted that while affordability challenges persist for many prospective buyers, mortgage rates have declined from recent peaks, potentially encouraging some activity in the market.
Geopolitical developments have significantly influenced housing market conditions. A military conflict that began in late February triggered considerable economic disruptions, initially driving oil prices higher and raising inflation concerns, which shifted expectations away from interest rate cuts. Oil prices have since retreated to levels closer to prewar figures, and key shipping routes have reopened, though security concerns remain.
Regional variations in house price performance were pronounced. Northern Ireland led the UK with annual growth of 7.4%, while Scotland recorded 3.9% annual increase. Wales saw annual growth of 0.9%. Within England, northern regions showed stronger gains, with the north-east at 2.8% and the north-west at 2.4%, while southern regions experienced declines, particularly the south-east at minus 2% and London at minus 1.1%.
First-time buyers demonstrated resilience, with annual price growth accelerating to 0.8% in June from 0.3% in May. The average property purchased by first-time buyers reached £240,433. Market analysts suggested that further growth would depend on sustained easing of inflation and gradual improvement in household confidence, with lower borrowing costs expected to provide continued support for demand.
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