House prices rose for the first time in four months during June, increasing by +0.2%, compared to May.
This is according to the Lloyds House Price Index – the new name for the long-standing Halifax index.
The typical property now costs £299,330, while the annual rate of growth also edged higher to +0.6%.
Amanda Bryden, head of mortgages at Lloyds, says: “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.
“For first-time buyers, annual price growth increased to +0.8% in June from +0.3% in May, with the average first-time buyer property now costing £240,433, suggesting demand remains resilient.
“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.”
This article is taken from Landlord Today