House prices have continued to show resilience in the face of an uncertain market, with prices remaining largely stable, although annual growth has eased, according to Halifax’s April house price index.
Average house prices edged down 0.1% in April to £299,313 after a 0.5% fall in March, while annual growth slowed to 0.4% compared to 0.8% in March.
At 7.6% annual house price growth (to £224,851), Northern Ireland continues to lead the UK, but Scotland also witnessed strong annual price growth, up 4.0% to £222,448.
Wales grew only 0.7% to £230,952. In England, the north performed the strongest, with prices up 4.5% in the northeast and 3.4% in the northwest, while in the southeast they were down 2.0% year‑on‑year and down 1.4% in London.
Stable prices prove helpful for investors
Amanda Bryden, head of mortgages at Halifax, said that the overall resilience of prices was good news for those looking to invest. “A slower pace of house price growth may be disappointing news for existing homeowners. However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched.”
She said the market was particularly attractive for first-time buyers, for who average prices had fallen slightly to £238,908, the lowest level so far this year.
Foxtons CEO Guy Gittins agreed the news was encouraging for buyers. “A very marginal monthly dip in house prices is unlikely to cause concern. At Foxtons, demand was up in April and we’re confident the recent decision to hold the base rate will provide further reassurance to buyers about the overall resilience of the UK property market.”
Verona Frankish, CEO of Yopa, said the latest results showed: “a clear sign that buyer appetite remains strong, particularly amongst those who have adapted to higher borrowing costs and are now keen to press on with their move.”
Meanwhile, Marc von Grundherr, director of Benham and Reeves, said the news was also encouraging – even for the capital. “Buyer demand across London has remained consistent and, with mortgage rates continuing to improve, we expect confidence to strengthen further as we move through the summer market.”
However, Tom Bill, head of UK residential research at Knight Frank, said longer-term challenges could be evident. “The recent spike in mortgage rates will only put gradual downwards pressure on house prices as more favourable offers that pre-date the Middle East conflict take several months to lapse. It means some buyers are keen to complete, while others have seen their spending power reduced.
“We expect house prices to begin falling in the coming months, but modest growth to return by the end of the year. However, that will depend on how long the conflict lasts, to what extent it escalates and how the government responds to the economic shock.”
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