Source: Sharecast
According to the latest Lloyds house price index - formerly the Halifax HPI - British house prices increased 0.2% in June, following a 0.2% softening in May. It was the first increase for four months and slightly ahead of consensus expectations for a 0.1% uplift.
The average property price now stands at £299,330.
Year-on-year, house prices rose by 0.6%, up from May’s 0.5%.
Lloyds noted that while affordability remained stretched for many buyers, mortgage rates have eased off recent highs, helping those looking to move home.
Amanda Bryden, head of mortgages at the lender, added: "While latest industry data shows the number of new mortgage approvals dropped in May, this wasn’t unexpected given the spike in rates seen earlier this year, and we’d expect to see activity recover, assuming borrowing costs continue to fall.
"We expect the housing market to continue moving at a measured pace. Lower borrowing costs should provide some support for demand, though affordability constraints remain an important factor.
"The outlook for house prices will depend largely on inflation continuing to ease and household confidence gradually improving."
The house market stalled earlier in the year after the US invaded Iran, sending global energy prices soaring, reigniting inflation fears and dampening interest rate expectations. Prior to the outbreak of war, the Bank of England had been widely forecast to continue trimming the cost of borrowing this year. Instead, Bank Rate has been left on hold at 3.75%, while mortgage rates have risen.
However, the US and Iran have now agreed to reopen the Strait of Hormuz and cease fighting while a permanent peace deal is negotiated, sending oil prices sharply lower.
Lloyds Banking Group announced last week that it was phasing out the Halifax brand after 173 years. The HPI has been running since 1983.