UK house prices rise for first time since start of Iran war | House prices

House prices across the UK rose for the first time since before the Iran war, with property values ​​only slightly below those seen at the start of the year, the survey found.

The cost of a typical property was £299,330 in June, up 0.2% on the previous month. This follows a monthly decline of 0.2% in May according to the latest Lloyds house price index, previously known as the Halifax HPI. The annual growth rate increased from 0.5% to 0.6%.

June’s price rise was the first monthly increase since February, when prices rose 0.3% to £301,051; but it was still below the £300,283 level then and in January.

Amanda Bryden, head of mortgages at Lloyds, said: “Recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations.

“While affordability is still stretched for many buyers, mortgage rates have fallen from recent highs, providing some encouragement to those considering a move.”

Surprise US-Israeli missile attacks on Tehran on February 28 launched a four-month war; There is currently a fragile ceasefire in place as the United States and Iran attempt to negotiate a permanent peace deal. The war initially caused oil prices to rise and increased inflation; This meant that interest rate cut predictions turned into interest rate increase expectations of the Bank of England.

Oil prices have since fallen back to pre-war levels, while Brent is trading at around $72 a barrel, up 1.1% on Tuesday. The Strait of Hormuz has been reopened and tankers stuck there have been allowed to pass, but the situation remains unstable.

Two US officials told US news site Axios that the Iranian army fired at least two missiles at commercial ships passing through the strait on Monday night.

Lloyds said annual price growth for first-time buyers increased from 0.3% in May to 0.8% in June, with the average first-time buyer property now costing £240,433, suggesting demand remains resilient.

Bryden said: “Looking ahead, we expect the housing market to continue to move at a measured pace. Lower borrowing costs should provide some support to demand, but affordability constraints remain a key factor. The outlook for house prices will largely depend on inflation continuing to ease and household confidence gradually improving.”

Northern Ireland continues to record the strongest annual house price growth in the UK. Average prices rose 7.4% last year to £229,000.

Scotland had the next highest annual growth at 3.9%, with an average price of £223,277.

Property price growth in Wales has risen to 0.9% per year, with the typical house value rising to £231,142.

Strong price increases in the UK continued to be concentrated in the northern regions. In the north-east, prices rose 2.8% year-on-year to £181,133, while the north-west recorded 2.4% year-on-year growth, with the average property now costing £248,218.

In contrast, prices continued to fall in the south. Prices fell 2% year on year to £381,654, with the South East leading the declines, with average values ​​in London falling 1.1% to £534,831.