The Lloyds House Price Index showed UK house prices rose 0.6% year-on-year in June 2026, following a 0.5% increase in May.
On a monthly basis, prices grew 0.2%, reversing May's 0.2% decline, lifting the average property price to £299,330.
Amanda Bryden, Head of Mortgages at Lloyds, said the rebound reflected easing borrowing costs after mortgage rates retreated from recent highs, although affordability remained stretched and wider economic uncertainty, including global developments affecting inflation and interest rate expectations, continued to weigh on the housing market.
While mortgage approvals fell 14.9% in May after higher borrowing costs earlier in the year, Lloyds expects housing activity to recover if financing costs continue to ease.
Regionally, Northern Ireland posted the strongest annual house price growth at 7.4%, followed by Scotland (3.9%), the North East (2.8%), and the North West (2.4%).