UK house prices have increased for the first time since February, according to Lloyds

In June, UK home prices rose for the first time since February, but Lloyds cautioned that economic instability continues to impact the markets.

According to Lloyds, a mortgage lender, house prices in the UK went up in June for the first time since February. However, they warned that economic uncertainty is still hurting the housing market.

According to the most recent Lloyds House Price Index, which came out on Tuesday, house prices across the UK went up by 0.2% in June. This was the first monthly rise since February.

The rise made average home prices 0.6% higher than they were a year ago, which was about what the market expected. According to economists polled by Reuters, the economy would grow by 0.1% each month and by 0.8% each year.

The long-running house price measure from Lloyds, which used to be called the Halifax House Price Index, has now been renamed the Lloyds House Price Index.

Even with the most recent monthly rise, the lender said that house prices have stayed mostly the same since the beginning of the year. This caution among buyers and sellers is due to the uncertainty in the economy.

Recent figures from the Bank of England also showed that the housing market was not very active. In May, mortgage approvals dropped to their lowest level since December 2023.

Amanda Bryden, Head of Mortgages at Lloyds, said that the housing market is not likely to grow quickly in the coming months but is more likely to stay the same.

She said that the next big thing that will affect house prices is how long it takes for inflation to continue to go down and consumer confidence to rise.

The financial markets are putting in a 75% chance that the Bank of England will raise interest rates by 0.25 percentage points before the end of the year. This could change how much it costs to borrow money and how many people want to buy homes.