House prices in the United Kingdom saw a modest increase of 0.2% in June, reversing a slight decline experienced in May. The average property value rose to £299,330, marking the first monthly gain in four months, following a period of heightened mortgage rates triggered by geopolitical tensions related to the conflict in Iran.

According to data from Lloyds, the annual rate of house price growth inched up to 0.6%, supported by a notable 0.8% rise in prices specifically within the first-time buyer segment, suggesting a gradual recovery in demand among new entrants to the housing market.

Regional disparities persisted, with the South East and London continuing to experience declines. In the South East, average house prices dropped by 2% to £381,654, while London saw a 1.1% decrease, bringing the average down to £534,831. Conversely, the northern regions showed stronger performance, with the North East recording a 2.8% increase to £181,133 and the North West rising by 2.4% to £248,218.

Lloyds commented that these trends indicate the housing market is stabilizing and is expected to maintain a measured pace of activity going forward, balancing between fluctuating mortgage costs and regional economic factors.