House prices fell by 0.8% between March and April which Halifax says, combined with February’s 1.5% fall, has offset March’s 2.2% gain.
House prices in the three months to April were 1.5% higher than in the preceding three months - also the smallest quarterly increase since November 2015 (1.4%).
Martin Ellis, Halifax housing economist, said:
"House prices in the three months to April were 1.5% higher than in the previous quarter, this rate has halved from 2.9% in March. The annual rate of growth eased from 10.1% to 9.2% in April. Both the quarterly and annual rates are at their lowest since last autumn.
“Current market conditions remain very tight as the severe imbalance between supply and demand persists. This situation, combined with low interest rates and rising employment and real earnings, should continue to push house prices up over the coming months.
”Weakening sentiment regarding house price prospects and a dip in consumer confidence, however, suggest that annual house price growth may ease.”
Mark Posniak, Managing Director at Dragonfly Property Finance, added:
"After the artificial stimulus provided by the stamp duty deadline for buy-to-let and second homes, house prices were almost certain to come off the boil in April. As we approach the EU referendum, caution will almost certainly prevail and prices are likely to edge down further.
"We are unlikely to see a material decline in the market, however, due to the fact that the supply/demand imbalance remains as pronounced as ever and the cost of borrowing so low.
“At present, given the EU referendum and broader economic uncertainty, both domestic and global, there are a number of reasons not to buy, but at the same time there are strong structural reasons to buy. This symbolises the current volatility in UK property.
"How the property market reacts to the result of the EU Referendum vote is frankly anyone's guess. In the next month or two, the UK property market is entering the unknown."
