Analysis of movement in house price indices

Each month, Lloyds, Nationwide and HM Land Registry publish house price indices, tracking the movement in average house prices in the UK. Lloyds and Nationwide updates are based on mortgage approvals data, while the UK HPI is a joint production by HM Land Registry, Land and Property Services Northern Ireland, ONS and Registers of Scotland.

The Halifax House Price Index was renamed the Lloyds House Price Index in July 2026. The methodology is unchanged and the index is already based on both Halifax and Lloyds mortgage data.

Small uptick in annual house price growth reported in June

House prices increased in the year to June 2026, by 0.6% and 2.2% according to Lloyds⁽¹⁾ and Nationwide’s⁽²⁾ indices respectively.

On a monthly basis, Lloyds reported a 0.2% increase in house prices in June, while Nationwide reported no change.

Dr David Crosthwaite, chief economist at BCIS, said: ‘House prices, according to the Lloyds and Nationwide indices, recorded modest growth in June, in line with the gradual recovery expected following recent events in the Middle East. Growth was seen across every region of the UK, although it remained uneven, with the weakest increases recorded in the Outer Metropolitan, East Anglia and the Outer South East.

‘While this is encouraging, it will take time for confidence and activity levels to recover fully. Further reductions in interest rates and a more favourable borrowing environment would help support market activity. This will be crucial for stimulating house building and increasing demand at a time when new government leadership will likely be looking to deliver on its housing targets.’

According to the Financial Conduct Authority, which collects mortgage lending data via the Mortgage Lending and Administration Return⁽³⁾, the value of new mortgage commitments (lending agreed to be advanced in the coming months) increased by 11.5% in 1Q2026 from the previous quarter to £78.0 billion and was 14.2% higher than a year earlier, reversing the 11.9% quarterly decline recorded in 4Q2025, which had been the largest fall since 3Q2023.

Amanda Bryden, Head of Mortgages at Lloyds, said recent price trends continue to reflect wider economic uncertainty, including the impact of global events on inflation and interest rate expectations.

She said: ‘While affordability remains stretched for many buyers, mortgage rates have eased from their recent highs, offering some encouragement to those considering a move.

‘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.’

She also noted that the housing market is expected to continue moving at a measured pace, reflecting the balance between affordability constraints and the support of lower borrowing costs for demand.

Nationwide’s Chief Economist, Robert Gardner, said it was unsurprising to see the market soften in recent months in response to the developments in the Middle East and subsequent impact on energy prices and interest rates.

He added: ‘Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.

‘While geopolitical tensions remain high, the signing of a memorandum of understanding between Iran and the US helped push oil prices back towards the levels prevailing before the conflict began.

‘If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated – a view reinforced by the fact that UK inflation has also been lower than expected in recent months.’

The UK HPI⁽⁴⁾, with the latest data for April 2026, showed a 3.8% increase in house prices compared with April 2025 and a 0.7% increase on March 2026.

As the UK HPI figures cover house sales that may have been agreed in months previously, there tends to be a lag in the data.

^{Source: Lloyds (Methodology), Nationwide (Methodology), UK HPI (Methodology)}

The latest regional data from Nationwide show Northern Ireland, the North West and the North recorded the greatest annual house price increases in 2Q2026. Northern Irish house prices rose by 8.6% while prices in the North West and the North both increased by 3.9%.

In 2Q2026, the UK as a whole saw annual house price growth of 2.2% on the same quarter in 2025.

^{Source: Nationwide – Quarterly Regional House Price Statistics – Q2 2026}

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^{(1) Llyods – House Price Index – June 2026  - here}

^{(2) Nationwide – Annual house price growth edges higher in June  - here}

^{(3) FCA – Mortgage lending statistics – June 2026 - here}

^{(4) GOV.UK – House Price Index for April 2026 - here}