- House prices fell by -0.5% in March, following a +0.3% rise in February.
- Average property price now £299,677
- Annual growth of +0.8% has also slowed, down from +1.2% in February
- Northern Ireland remains the region with the highest annual percentage growth
- The North East has demonstrated notable annual percentage growth, surpassing Scotland, at +5.0%
Amanda Bryden, Head of Mortgages, Halifax, said:
“House prices fell -0.5% in March, following the modest +0.3 per cent increase seen in February. As a result, the average property price is now £299,677. The pace of annual growth has also eased, slowing to +0.8 per cent from +1.2 per cent the previous month, suggesting the market has lost some momentum as spring begins.
“The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East. Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year.
“The effect on house prices will largely depend on how long‑lasting these pressures prove to be and the wider implications for the economy and unemployment. Mortgage rates are a key factor for buyers, particularly those getting on the ladder for the first time, who are already balancing the challenge of saving a deposit, with the cost of borrowing.
“As a result, many are likely to watch movements in mortgage rates closely, before making a decision on any home purchase. In this environment, professional advice can play an important role in helping people understand their options and make informed decisions that are right for their individual circumstances.
“However, the recent increase in UK mortgage rates has been more modest than the sharp rises seen during the mini budget of 2022. Further, many households will already be on fixed deals, protecting them from the latest rate rises. Taking all this into account, house prices may prove resilient, even if uncertainty weighs on market activity in the near term.”
Nations and regions house prices
House prices continue to vary by region, with stronger growth in the North and more subdued conditions in the South.
Northern Ireland continues to lead UK annual house price growth, with average prices up +8.7% over the past year to £224,809. Scotland also recorded strong growth, rising +4.4% annually to an average price of £222,716.
Wales saw a more modest increase of +1.6% on annual basis, taking the typical home value to £230,909.
In England, stronger price growth remains concentrated in northern regions. The North East saw prices rise +5.0% over the year to £184,119, while the North West recorded annual growth of +3.1%, with the average home now costing £247,442.
By contrast, the southern markets continue to see prices ease. The South East led declines, with prices down -1.9% year-on-year to £383,573, while London saw average values fall by -1.2% to £536,751.
