Mortgage lender Lloyds says UK house prices rose in June for the first time since February, but warned that economic uncertainty continues to weigh on the housing market.
House prices across the United Kingdom increased by 0.2% in June, marking their first monthly gain since February, according to the latest Lloyds House Price Index released on Tuesday.
The increase left average property values 0.6% higher than a year earlier, broadly in line with market expectations. Economists surveyed by Reuters had forecast a 0.1% monthly increase and annual growth of 0.8%.
Lloyds also confirmed that its long-running house price indicator, previously known as the Halifax House Price Index, has been rebranded as the Lloyds House Price Index.
Despite the latest monthly rise, the lender said house prices have remained broadly stable since the start of the year, reflecting continued caution among buyers and sellers amid an uncertain economic environment.
Recent data from the Bank of England also pointed to subdued activity in the housing market, with mortgage approvals in May falling to their lowest level since December 2023.
Amanda Bryden, Lloyds’ Head of Mortgages, said the housing market is likely to remain steady in the coming months rather than experience rapid growth.
She said future house price movements will largely depend on inflation continuing to ease and consumer confidence improving over time.
Meanwhile, financial markets are pricing in around a 75% probability that the Bank of England will raise interest rates by 0.25 percentage points before the end of the year, a move that could influence borrowing costs and housing demand.
Goodness Anunobi
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