House prices fall again in April – Halifax

House prices dipped for a second month in April, with Halifax putting the average home’s price tag at £299,313.

That’s £296 lower than in March, after values edged down by 0.1% during the month.

The lender said annual house price growth slowed to 0.4%, down from 0.8% in March, following what it described as a stronger start to the year.

First-time buyers paid an average of £238,908 in April, the lowest figure recorded so far this year.

Outlook is uncertain

Amanda Bryden, head of mortgages at Halifax, said: “After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook.

“In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers.”

She added: “The housing market continues to display the resilience that has been its hallmark in recent years.

“While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.”

NI tops house price growth

Halifax data shows that Northern Ireland recorded the strongest annual house price growth, with average prices up 7.6% over the year to £224,851.

Scotland saw annual growth of 4.0%, taking the average home to £222,448, while Wales recorded growth of 0.7%, with the typical property valued at £230,952.

In England, the North East posted annual growth of 4.5%, with average prices reaching £183,445.

The North West recorded a 3.4% annual rise, taking the average home there to £248,945.

The South East recorded a 2% annual drop, with the average property now £383,044, while London values fell by 1.4% to £536,051.

Industry reaction to Halifax house price data

Nathan Emerson, the chief executive of Propertymark, said: “Despite ongoing uncertainty within the economy, it is reassuring to see a position of consistency concerning house prices currently.

“However, it is imperative to note that many people may face future affordability challenges until there is sustained de-escalation concerning current global unrest.

“The rate of inflation remains a key concern for many people, especially as there is widespread speculation that the Bank of England may potentially need to implement measured base rate increases over the coming months to best regulate potential future financial instability.”

Tom Bill, the head of UK residential research at Knight Frank, said: “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 coming months but modest growth to return by the end of the year.”

Jason Tebb, the president of OnTheMarket, said: “Despite challenging economic conditions and political uncertainty, needs-driven buyers and sellers who may have put moves on hold last year are showing resilience and remain focused on transacting.

“While affordability concerns remain, rather than retreating from the market, borrowers are adapting and grabbing lower mortgage rates while they can.”

The CEO of Foxtons, Guy Gittins, said: “A very marginal monthly dip in house prices is unlikely to cause concern and reflects the more measured pace of the market seen so far this year, particularly against the heightened turbulence of the wider economic backdrop.

“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, the CEO of Yopa, said: “A small monthly adjustment is nothing to be concerned about and the underlying strength of the market remains very evident when you look at the broader trend.

“House prices are continuing to hold firm despite ongoing affordability pressures and that’s 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.”

Marc von Grundherr, a director of Benham and Reeves, said: “While the market may have paused for breath on a monthly basis, the wider picture remains one of stability and resilience and that’s particularly encouraging given the economic uncertainty seen so far this year.

“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.”