UK house prices finally showed signs of stabilising last month, with a modest 0.2% rise bringing the average price to £299,330, according to Lloyds' latest data - the first monthly increase in four months.
Amanda Bryden, Head of Mortgages at Lloyds, warned that these trends continue to reflect broader economic uncertainties, including global events affecting inflation and expectations for interest rates. Despite affordability remaining a significant challenge, she noted that mortgage rates have softened from their recent peaks, potentially encouraging buyers.
Regionally, Northern Ireland led the UK with 7.4% annual house price growth, its average values reaching £229,000. Scotland followed with an annual increase of 3.9%, taking its average property price to £223,277. In Wales, annual property price growth strengthened by 0.9%, with a typical home now valued at £231,142.
The North East experienced a 2.8% rise over the year to £181,133, and the North West recorded annual growth of 2.4%, with the average property price at £248,218. In contrast, the South East saw a 2.0% annual fall to an average of £381,654, and London values were down 1.1% year-on-year, standing at £534,831.
Industry experts have offered mixed reactions to the figures. Nathan Emerson, CEO of Propertymark, described the market as broadly encouraging, with both monthly and annual growth. However, he cautioned that Bank of England data on falling mortgage borrowing necessitates monitoring of its impact on house prices this summer.
Amy Reynolds, Head of Sales at Antony Roberts estate agency, characterised the market as largely stable, attributing modest growth to temporarily elevated fixed-rate mortgage pricing influenced by lender application surges. Jeremy Leaf, a North London estate agent and former RICS residential chairman, noted that property prices have shown surprising resilience despite ongoing concerns about living costs, energy prices and particularly mortgage rates.