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UK house prices rise for first time in four months

“June’s rise in prices was the first monthly gain since before the start of the Iran war at the end of February,” Ashley Webb, senior UK economist at Capital Economics, said. “[The increase] suggests that the weak housing market may be starting to turn a corner, especially if the recent fall in swap rates, which underpin the pricing of fixed mortgages, is sustained.”

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Webb is predicting that house prices will rise by about 1.5 per cent across 2026 as a whole and said any worries that he was being too optimistic “are starting to fade” following the latest Lloyds data.

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