"April demand will have been steered by those looking to complete before the holiday starts to gradually taper from July."
This is the first time UK house price growth has slowed since July 2020.
Average house prices increased by 8.9% in England, 15.6% in Wales, 6.3% in Scotland, and 6.0% in Northern Ireland.
On a seasonally adjusted basis, average house prices in the UK decreased by 2.2% between March and April following an increase of 2.0% in the previous month.
The North East was the region with the highest annual house price growth, with average prices increasing by 16.9% in the year to April, up from 14.2% in March.
London continues to be the region with the lowest annual growth (3.3%) for the fifth consecutive month.
Jeremy Leaf, north London estate agent and former RICS residential chairman, commented: "The historic nature of these numbers, though the most comprehensive available, is likely to mean the small fall in monthly prices is more of a response to the anticipated end of the stamp duty holiday in March before they resume their upward trajectory following extension of the concession.
"Looking forward, our experiences on the ground tell us that market activity is set to continue at similar levels at least for the next few months, although increasing sales instructions will result in some price softening rather than a correction. Of more concern is the ability for first-time buyers to get onto the property ladder as the market resurgence has been driven by equity rich homeowners at the expense of those who are finding it even more difficult to raise deposits."
Anna Clare Harper, CEO of property consultancy SPI Capital, added: "Other data sets are produced faster, but the UK HPI is, in many ways, more important as it represents the whole of the market.
"8.9% house price growth in the year to April results from causes including the temporary stamp duty reduction, low interest rates, lockdown-led upsizing and a flight to safer investments. All of these factors and more are driving demand, and yet construction is getting harder and more expensive, and the supply of existing stock is constrained.
"This rise in house prices is, in many ways, hardly remarkable. It is a continuation of a long-term trend: house prices rising faster than most people’s wages, making ‘affordable home ownership’ for younger and less well-off people a work of fiction, unless underpinned by government support.
"The cultural shift is that, while ‘boomers’ still see home ownership as a reflection and determinant of success, younger people don’t all want or need to ‘get on the property ladder’. Yes, it would be nice, but the higher priority is quality, affordable housing, not ownership.
"With this in mind, it is a great time for investors who are serious not just about making money, but about providing good quality housing for their tenants: demand is growing.
"It is also a great time for policy makers to consider what measures will facilitate affordable rental housing for all - not just new build, prime high rise flats, but family homes, both new and existing."
Conor Murphy, CEO of Smartr365, commented: “While Q1 demand was driven by buyers rushing to complete before the initial deadline for the tax break at the end of the quarter, April demand will have been steered by those looking to complete before the holiday starts to gradually taper from July.
“The positive impact of the stamp duty holiday far outweighs any negative impact of the consequential rise in average property prices. The tax break is a powerful initiative as it helps ensure that homeownership remains a viable option for all, rather than just for those who are fortunate enough to rely on gifted deposits. The government should certainly consider how it will continue to level the playing field following the end of the initiative in the autumn.
“With reports suggesting that up to 131,000 buyers are set to miss the stamp duty deadline, it is vital that the industry reflects on how mortgage tech can be used to cut inefficiencies in the homebuying process and help as many purchases over the line as possible. Powerful sourcing tools, one-click DIPs and digital ID verification are just some of the features that reduce the legwork in the application process, leaving advisors with more time to help the growing number of buyers."
