7 July 2026
If you are covering the Lloyds house price index, please see the following comment from Ian Futcher, financial planner at Quilter:
“UK house prices picked up marginally in June, rising 0.2% on the month and 0.6% on an annual basis, according to the newly rebranded Lloyds house price index. This marks the first monthly increase since February, and brings the average property price to £299,330.
“Regional differences remain stark, with house price growth most concentrated in the North while the South has continued to struggle. Northern Ireland has taken the top spot with 7.4% annual growth, and in England, the North East saw prices rise 2.8%. The South East led declines with a 2.0% fall in prices, and London was not far behind with a 1.1% decline.
“Mortgage rates have eased from the highs seen earlier this year as swap rates have stabilised and lenders compete for relatively limited business, but borrowing costs are still elevated and affordability is stretched for many households. Recent lending and approvals data have shown buyers are being much more cautious, and it seems many are opting to hold off on making any big moves until they have more certainty around the path of interest rates.
“There is also a risk that household finances get worse before they get better. While tensions in the Middle East have eased and the ceasefire has helped calm markets somewhat, many households are unlikely to feel the benefits immediately. The energy price cap has risen by 13% this month, and higher energy and food bills will add to the squeeze. For prospective buyers, this will make affordability even more challenging, which could in turn weigh on house prices.
“The Bank of England will likely be inclined to sit on the fence for now, but lender competition could still result in some opportunities for buyers. Should mortgage rates gradually edge lower and confidence improve, housing market activity could begin to pick up later in the year. For those looking to buy their first home, move or remortgage, reviewing options as early as possible and seeking professional advice can help ensure you are well positioned as market conditions continue to evolve.”
