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4m agoModest rise in UK house prices is the first increase in four months, Lloyds says
10m agoIntroduction: UK house prices inch higher in June
The modest 0.2% month-on-month rise in UK house prices in June represents the first increase in four months, Lloyds has said. In May, prices had slipped by 0.2% compared with the month prior.
Bryden adds that for first-time buyers, annual house price growth rose from 0.8% in June from 0.3% in May. The average first-time property now costs £240,433, according to Lloyds.
London remains the most expensive market in the UK, where an average property costs £534,831 – though prices here fell by 1.1% year-on-year in June. More broadly, the south east was the worst performing region across the UK, with prices down 2% y-o-y.
Scotland was the second strongest behind Northern Ireland, where prices were up 3.9% to an average of £223,277.
In Wales, prices were up 0.9% on an annual basis to £231,142. In the north east of England, prices were up 2.8% to an average of £181,133, while the north west recorded a rise of 2.4% to £248,218.
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UK house prices nudged up 0.2% in June compared with the month prior, according to new figures from the lender Lloyds.
The average price for a home is now £299,330, it found, compared with £298,812 in May.
On an annual basis, house prices are up 0.6% – slightly higher than an annual growth rate of 0.5% in May. Northern Ireland remains the clearest outlier, with an annual growth rate of 7.4%.
Amanda Bryden, head of mortgages at Lloyds, said the figures reflected wider economic uncertainty.
Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations. While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move. While latest industry data shows the number of new mortgage approvals dropped in May, this wasn’t unexpected given the spike in rates seen earlier this year, and we’d expect to see activity recover assuming borrowing costs continue to fall. …Looking ahead, we expect the housing market to continue moving at a measured pace. Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor. The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving.”
Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations. While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move.
While latest industry data shows the number of new mortgage approvals dropped in May, this wasn’t unexpected given the spike in rates seen earlier this year, and we’d expect to see activity recover assuming borrowing costs continue to fall.
…Looking ahead, we expect the housing market to continue moving at a measured pace. Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor. The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving.”
Meanwhile overnight, Asian stocks have been broadly falling as the chip sector has come under pressure. The MSCI Asia Pacific index is down 1.4%.
Samsung Electronics, which has been one of the best performing stocks in the region this year having more than doubled its share price, dropped as much as 10% despite reporting a 19-fold jump in profit. The chipmaker SK Hynix dropped 6%, and the South Korean Kospi index dropped 5.3%. Earlier in the day an 8% drop in the index triggered a temporary trading halt.
The agenda
7am BST: Lloyds house prices for June
9.30am BST: Fiscal risks and sustainability report from the Office for Budget Responsibility
10.30am BST: Bank of England Financial Stability report
1.30pm BST: US May trade balance
