Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

House Prices Edge Up 0.2% in June, Southern Regions Still Declining

UK house prices increased by 0.2% in June, following a 0.2% decline in May, according to market analysis from Lloyds Banking Group. This marks the first monthly rise in house prices in four months, with the average property value now at £299,330.

Annual house price growth was recorded at 0.6% in June, up slightly from 0.5% in May, based on data from the Lloyds House Price Index (formerly Halifax). However, on a quarterly basis, property values fell by 0.4%.

For first-time buyers, annual price growth rose to 0.8% in June from 0.3% in May, with the average first-time property costing £240,433.

Regional trends showed that Northern Ireland and Scotland experienced the highest annual increases in house prices, at 7.9% and 3.9% respectively. Wales saw a 0.9% annual rise, while growth in England was concentrated in the North East (2.8%), North West (2.4%), and East Midlands (1.1%). In contrast, the South East recorded a 2% annual fall in property prices, and the South West saw a 1.3% drop.

Mortgage Approvals and Market Conditions

The Bank of England’s Money and Credit report indicated a decline in mortgage approvals, with 56,200 mortgages approved for house purchases in May, down from 66,000 in April. This was the lowest monthly level since the end of 2023, reflecting the impact of higher mortgage rates in April. Mortgage rates have since begun to fall.

Savills’ forecast, as referenced in the report, expects mainstream house prices to fall by 2% this year, with growth anticipated to resume in 2027.

These trends are relevant for letting agents and inventory clerks monitoring regional market shifts and the impact of mortgage activity on rental demand and property turnover.