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UK House Prices Tick Up as Mortgage Rates Ease

Eased mortgage costs after cooling Iran‑war inflation fears have given cautious encouragement to buyers and could support a slow recovery if borrowing costs fall further.

Overview

  • Lloyds and Halifax data published on Tuesday showed average UK prices rose 0.2% in June to £299,330, the first monthly gain in four months.
  • Quarterly figures still fell, with house prices down 0.4% in Q2 2026, showing the short‑term rise has not yet reversed the quarter’s decline.
  • Regional splits drove the national picture, with southern England and London weak but the North East and North West recording the strongest monthly gains.
  • Mortgage markets softened after a spike tied to Iran‑war inflation fears, and Nationwide cut some home loan prices twice in June, helping first‑time buyer prices to rise 0.8%.
  • Lenders warn activity will move slowly until inflation keeps easing, borrowing costs stay lower and household confidence improves, so affordability and low approval rates from May remain important constraints.