Home prices fall 0.1% year-to-April, Halifax says, with average property now worth £7,000 less than summer 2022 peak
- The median house price in the UK is now £286,896
- Regionally, the Southeast saw the largest fall in house prices in the past month
- But on average prices are still £28,000 higher than two years ago
House price growth fell in April after a stronger rise in March, ending three consecutive months of growth, according to Halifax’s latest house price index.
Year-on-year price growth fell to 0.1 percent last month, compared to an increase of 1.6 percent in March.
The median house price in the UK is now £286,896, almost £1,000 less than a month ago.
The current figure is about £7,000 less than last summer’s peak, though £28,000 higher than two summers ago, as properties retain much of the value gained during the pandemic.
Average UK house prices fell by £995 to £286,896 in April, ending three months of growth
Kim Kinnaird, director of Halifax Mortgages, said: ‘The economy has proven to be resilient, with a robust labor market and consumer price inflation forecast to decelerate sharply in the coming months.
‘Mortgage rates are now stabilizing and, although they remain well above the average of recent years, they provide prospective buyers with important security.
While the housing market as a whole remains subdued, the number of homes for sale is slowly increasing as sellers adjust to market conditions. While the housing market as a whole remains subdued, the number of homes for sale is slowly increasing as sellers adjust to market conditions.
“In addition to a market-wide rebound in mortgage approvals, these latest numbers may point to a more stable environment.”
However, Kinnaird warns that the cost of living is still impacting households and will continue to dampen sentiment and activity.
In addition, many are still facing a mortgage shock when their fixed rates expire this year, which could put further downward pressure on the market.
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Currently, the market is split between new construction and existing properties, Halifax data shows.
Prices of existing real estate fell by -0.6 percent last year. In contrast, new-build home prices rose 3.5 percent over the past 12 months, providing some support for the broader market.
The market is stabilizing, Halifax says, as buyers accept higher rates as the new normal
This also demonstrates the key role first-time buyers play in supporting the housing market. Average property prices for the group increased 0.7 percent over the year, compared to a 0.1 percent decline for movers.
Halifax notes that despite the challenge of making a down payment, rising rental costs are making home ownership increasingly cost-effective.
Skipton Building Society has just launched a new mortgage product to tap into this market.
The 100 percent LTV mortgage exclusive to tenants comes with a guarantee from the lender that the monthly mortgage payment for each applicant will not exceed the rent they are accustomed to paying.
Regionally, the south of England has seen the biggest drop in house prices in the past year, falling 0.6 per cent to £387,469.
The West Midlands, on the other hand, posted the strongest annual growth rate of 3.1 per cent, bringing the average property price to £249,554.