UK House Prices Rise Less Than Expected: Halifax

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. Compared to the previous month, house 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 was supported by easing borrowing costs as mortgage rates retreated from recent highs. However, affordability remained stretched, while broader 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%).

The Halifax House Price Index showed UK house prices rose 0.5% year-on-year in May 2026, below the expected 1.0% increase and following a 0.4% gain in April. The average UK house price stood at £298,806. On a monthly basis, prices fell 0.1%, matching the decline recorded in April and contrasting with forecasts of a 0.1% increase. Amanda Bryden, Head of Mortgages at Halifax, noted that uncertainty surrounding developments in the Middle East and higher inflation expectations have kept borrowing costs elevated despite recent mortgage rate cuts, weighing on affordability and demand. Still, housing market activity has remained resilient, with transaction levels holding relatively steady. Regionally, Northern Ireland recorded the strongest annual house price growth at 7.8%, followed by Scotland (3.8%), the North East (3.1%), and the North West (3.0%). By contrast, prices fell in the South East (-2.1%) and London (-1.5%).

The Halifax House Price Index showed UK house prices rose 0.4% year-on-year in April 2026, below expectations of a 0.6% increase and following a 0.8% gain in March, marking the softest annual growth in four months. The average UK home price stood at £299,313. On a monthly basis, prices fell 0.1%, in line with expectations and after a 0.5% decline in the previous period. Amanda Bryden, Head of Mortgages at Halifax, said the UK housing market slowed in April as global uncertainty and rising energy prices lifted inflation expectations and borrowing costs, making households more cautious. Still, she noted the market remains relatively resilient, supported by wage growth outpacing house price inflation and the prevalence of fixed-rate mortgages. Regionally, Northern Ireland recorded the strongest annual house price growth at 7.6%, followed by the North East at 4.5% and Scotland at 4.0%, while prices fell in the South East (-2.0%) and London (-1.4%).