Nationwide’s House Price Index for April 2023 revealed that house prices increased by 0.5% within a month, following seven consecutive months of decline. Annually, house prices have decreased by 2.7% in the year to April, reflecting a marginal recovery from last month’s 3.1% drop. The current average house price is £260,441, which remains nearly 5% below the peak of £273,751 in August.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, stated that the slight recovery in house prices is an encouraging sign for the market. However, she cautioned that it is too early to determine if this is a turning point. The increase in prices had been anticipated due to a slight rise in mortgage approvals for new purchases starting in February. The GfK confidence index indicates a slight improvement in people’s confidence in their personal finances, which could increase if inflation recedes swiftly after April.

Despite these positive signs, Coles warned that confidence remains relatively low historically. Factors such as stubbornly high food prices and rising wages may keep inflation elevated for several months. Additionally, the Royal Institution of Chartered Surveyors (RICS) reported declining buyer demand in March and lower agreed prices on sales, potentially indicating continued weakness in the market.

Nathan Emerson, CEO of Propertymark, stated that while transaction levels have remained stable year on year, sellers need to be realistic about pricing for efficient sales. Nicky Stevenson, Managing Director at Fine & Country, added that the small rise in house prices in April is a positive indication, but household finances are still tight and inflation remains high. With mortgage rates staying relatively stable, buyers are returning to the market, resulting in increased activity and growing stock levels, signalling a rise in confidence in the property market.