House Prices in the UK See First Increase in Four Months in June 2026

House prices in the UK have seen a slight increase in June 2026, marking the first rise in four months. According to the latest Lloyds House Price Index, prices rose by 0.2%, bringing the average property cost to £299,330. This comes after a 0.2% decline in May, indicating a potential turnaround in the housing market.

House Price Trends

The recent report reveals that the annual growth rate for house prices has also improved slightly, now at 0.6%, compared to 0.5% in May. This incremental change suggests that the housing market may be stabilising after a period of uncertainty caused by rising borrowing costs.

Amanda Bryden, Head of Mortgages at Lloyds, commented on the situation, saying:

“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%.”

First-Time Buyers

For first-time buyers, who often face the toughest challenges in the property market, the situation is looking a bit brighter. The average price for a first-time buyer’s property has increased by 0.8% to £240,433 in June, up from 0.3% in May. This suggests that demand among new buyers remains strong, despite the financial hurdles they may encounter.

“While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move,” Bryden added. This easing of mortgage rates is significant as it could provide a boost to potential buyers who have been hesitant due to high costs.

Regional Differences

Different regions across the UK are experiencing varied trends in house prices. Northern Ireland continues to lead the way with the strongest annual growth, showing an impressive 7.4% increase, bringing the average price to £229,000. Following closely is Scotland, with an annual growth of 3.9% and average prices of £223,277. In Wales, property prices have also strengthened with a growth of 0.9%, resulting in an average home value of £231,142.

In contrast, the southern regions of England are seeing declines in property values. The South East recorded a year-on-year drop of 2.0%, with average prices now at £381,654. London also faced a decline, with average values falling by 1.1% to £534,831. These contrasting trends highlight the regional disparities in the UK housing market.

Looking Ahead

The outlook for the housing market remains cautious but optimistic. Experts believe that lower borrowing costs could help stimulate demand, but challenges still exist. “The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving,” Bryden explained.

• June 2026: House prices rose by 0.2%.

• Average property cost: £299,330.

• Annual growth rate: 0.6%.

• First-time buyer property cost: £240,433, up from 0.3% growth in May.

• Northern Ireland: Leading with 7.4% annual growth.

• South East: Experiencing a 2.0% decline in prices.

As the market adjusts, many are watching closely to see how these trends develop in the coming months. The easing of borrowing costs is a positive sign, but the ongoing challenges of affordability and economic uncertainty will continue to impact buyers' decisions.