UK House Price Growth Halves in April

Annual house price growth in the UK halved in April compared with the previous month. The average UK house price saw a 0.1 per cent month-on-month decline in April, following a 0.5 per cent fall in March. This brought the average property value to £299,313.

The annual growth rate for a typical home fell to 0.4 per cent in April from 0.8 per cent in March. A mortgage lender reported that average prices paid by first-time buyers are at their lowest levels this year. The lender said that after a strong start to the year, recent global developments have added uncertainty to the outlook.

Higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates. This shift has already pushed up borrowing costs for many buyers. The cost of living has become a greater concern for households, leading to more caution in planned property moves.

Even so, the housing market continues to display resilience. Wage growth continues to outpace house price inflation. 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 affect existing homeowners while stable prices could help those looking to enter the market, even as higher mortgage rates keep affordability stretched.

Ireland recorded the highest annual house price growth at 7.6 per cent. Scotland saw a 4.0 per cent annual increase. House prices in Wales slowed to annual growth of 0.7 per cent. In England, stronger price growth remains concentrated in northern regions.

The North East saw prices rise by 4.5 per cent over the year while the North West recorded annual house price growth of 3.4 per cent. Here are average house prices and the annual change: East Midlands £246,997 (0.6 per cent), Eastern England £333,457 (minus 0.7 per cent), London £536,051 (minus 1.4 per cent), North East £183,445 (4.5 per cent), North West £248,945 (3.4 per cent), Northern Ireland £224,851 (7.6 per cent), Scotland £222,448 (4.0 per cent), South East £383,044 (minus 2.0 per cent), South West £300,758 (minus 1.1 per cent), Wales £230,952 (0.7 per cent), West Midlands £265,713 (2.0 per cent), Yorkshire and the Humber £216,915 (1.0 per cent).

Two mortgage and personal finance specialists advised against attempting to time the market by waiting for further price drops. One property professionals’ body chief executive noted that the rate of inflation remains a key concern, with speculation that the Bank of England may need to adjust base rates in coming months.