"A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up."
Annual house price growth is below February’s 5.1% and less than half the 10.0% peak reached in March 2016.
House prices were unchanged between February and March for the second consecutive month, and rose just 0.1% in the three months to march - the lowest quarterly rate of change since October 2016.
Research released yesterday from Cebr predicts that average house price growth will slow to 4.4% in 2017, below the rate of 7.4% seen in 2016 and the slowest rate since 2013.
Martin Ellis, Halifax housing economist, said: “House prices in the three months to March were 0.1% higher than in the previous quarter; the lowest quarterly rate of change since October 2016. The annual rate of growth fell further; to 3.8% from February’s 5.1%, the lowest rate since May 2013.
“The annual rate of house price growth has more than halved over the past 12 months. A lengthy period of rapid house price growth has made it increasingly difficult for many to purchase a home as income growth has failed to keep up, which appears to have curbed housing demand.
“Nonetheless, the supply of both new homes and existing properties available for sale remains low. This, together with historically very low mortgage rates, is likely to support house price levels over the coming months.”
Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "Although this survey follows the pattern of other recent reports into the health of the housing market, it underlines the issue that house prices should still be rising more rapidly bearing in mind the low volume of transactions and shortage of stock. In other words, it is not very good news.
"However, what we have found on the ground is that there is more of a general acceptance that prices are flattening and if people want to move, then Easter is the time to get on with it and be more realistic about making and accepting offers."
