House prices rose annually by 0.6% across the UK, with Northern Ireland seeing the strongest gains of 7.4% over the year.
This monthly increase comes after prices fell in May. In fact, June represents the first rise in home prices in four months.
This data is from the Lloyd’s House Price Index (HPI), which until this month was known as the Halifax HPI. It was officially announced last week that Halifax would be rebranding as Lloyd’s.
Amanda Bryden, head of mortgages at Lloyds, said: “Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation expectations and interest rates.
“While affordability remains a stretch for many buyers, mortgage rates have retreated from recent highs, providing some encouragement for those considering a move.
“While the latest industry data shows the number of new mortgage approvals fell in May, this was not unexpected given the significant rise in interest rates we saw earlier this year, and we expect to see activity rebound assuming borrowing costs continue to fall.”
Home prices for first time buyers
Lloyd’s also focused on first-time buyers’ properties to reveal that annual prices rose 0.8% in June from 0.3% in May.
This means the average price of a property for a first-time buyer is now £240,433, which Lloyds said shows demand remains resilient.
House prices in the areas
In line with Nationwide’s House Price Index, Lloyds’ HPI also highlighted Northern Ireland as the region with the strongest growth. Here average prices have risen by 7.4% over the past year to £229,000.
Scotland saw growth of 3.9%, with an average price of £223,277, and Wales saw prices rise by 0.9% on average, pushing the value of a typical home to £231,142.
In England, growth was strongest in the north, with the north-east seeing prices rise by 2.8% over the year to £181,133.
However, in the south, prices fell with the South East seeing a 2% fall year-on-year to £381,654 and London prices falling 1.1% to £534,831.
Bryden added: “Looking ahead, we expect the housing market to continue to move at a measured pace. Lower borrowing costs should provide some support to demand, although constraints on affordability remain an important factor.”
“The outlook for house prices will depend largely on inflation continuing to decline and household confidence gradually improving.”
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