House prices remained broadly stable in April. House prices edged down -0.1% in April, following a -0.5% fall in March and average property price now £299,313, compared with £299,609 in March, Annual growth slowed to +0.4%, from +0.8% in March with Northern Ireland continuing to record the strongest annual growth at +7.6%.
Amanda Bryden, Head of Mortgages, Halifax, said:
“Average house prices showed little movement in April, edging down by just -0.1% compared to March, with the typical property now costing £299,313. The pace of annual growth also eased to +0.4%.
“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.
“This understandably leads to more caution among some households, with the cost-of-living once again front of mind and extra thought being given to planned property moves.
“Even so, 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.
“Another important factor is that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short term changes in interest rates.
“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. The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year.”
House prices continue to vary significantly by region and nation, with stronger growth in the North and more subdued conditions in the South.
Northern Ireland still leads UK annual house price growth, with average prices up +7.6% over the past year to £224,851. Scotland also recorded strong growth, rising +4.0% annually to an average price of £222,448.
Wales has seen property price growth continue to slow, now +0.7% on annual basis, taking the typical home value to £230,952.
In England, stronger price growth remains concentrated in northern regions. The North East saw prices rise +4.5% over the year to £183,445, while the North West recorded annual growth of +3.4%, with the average home now costing £248,945.
By contrast, the southern markets continue to see prices fall. The South East led declines, with prices down -2.0% year‑on‑year to £383,044, while London saw average values fall by -1.4% to £536,051.
