The Halifax House Price Index revealed that annual price growth decelerated to a mere 0.1% in April, with house prices declining by 0.3% following a 0.8% increase in March. The average property value now stands at £286,896, approximately £7,000 lower than last summer’s peak.
Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, remarked, “The Halifax figures pour cold water on the growing fires of optimism that had been lit across the property market in recent weeks.” She added that after clinging onto dwindling annual growth, the figures have reached a tipping point. Coles cited positive spring announcements, such as rising mortgage approvals and Nationwide’s 0.5% bump in April, as sources of hope for the market. However, she also acknowledged the potential for headwinds, including the possibility that high prices could persist even after savings are spent and new debts incurred.
Carl Howard, Group CEO of Andrews estate agents, commented that despite the slight dip in April, the market’s outlook has significantly improved since last autumn. He noted that rising mortgage approvals and sellers’ flexibility on prices have led to an increase in activity and more sales being completed. However, he acknowledged that the market’s resilience may be disappointing news for prospective first-time buyers, especially with persistent inflation.
Nicky Stevenson, Managing Director at national estate agent group Fine & Country, highlighted that sellers are becoming more realistic about the current economic situation and adjusting their property prices accordingly. This has led to a resurgence in activity as mortgage approvals increased significantly in March. Stevenson noted that people have accepted higher interest rates as the new norm and are benefiting from an expanding inventory, offering more choice for potential buyers. Nevertheless, she warned that stubbornly high inflation could prompt another base rate increase, potentially impacting the market’s activity.
The Halifax House Price Index for April was released today: Halifax UK | House Price Index | Media Centre
