UK house prices increased by 0.3% in April compared with a fall of 0.5% in March, with the annual rate of growth also increasing to 3.2%, reaching its highest level so far this year, the latest Halifax house price index shows.
House prices have remained "remarkably stable over last six months", according to the data, down by just £48.
Northern Ireland, Wales and Scotland recorded the strongest annual growth in house prices in the UK, with all three nations outpacing English regions.
Northern Ireland continues to post the highest level of annual property price inflation, rising by 8.1% in March.
Wales has the next fastest pace of annual house price growth, increasing to 4.7% last month, followed by Scotland, where property prices were up 4.6% year-on-year in April.
In England, the North West shows the strongest growth, up 4.1% on an annual basis.
London continues to see more subdued annual house price growth of 1.3%. However the capital remains the most expensive market for properties in the UK, with an average price tag of £543,346.
The South West has the slowest rate of annual property price inflation, at 0.9%.
Amanda Bryden, head of mortgages at Halifax, said: “We know the stamp duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn't lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic. While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years.
“Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers.
“Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments. There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year."
Jonathan Handford, managing director at national estate agent group Fine & Country, commented: "House prices ticked up in April, defying expectations of a slowdown after March’s stamp duty deadline frenzy and pointing to a market that’s proving more resilient than predicted.
"The end of the stamp duty relief window in England sparked a surge in completions — with mortgage lending hitting a four-year high in March. Early signs suggest that this confidence is holding, particularly as mortgage rates begin to ease.
"First-time buyers still face challenges, especially with the tax relief threshold now down £125,000, but falling inflation is providing a more encouraging backdrop. CPI dipped to 2.6% in March and markets are pricing in a potential base rate cut from the Bank of England, currently at 4.5%, possibly today.
"Lenders have already begun trimming fixed-rate deals, with more products dropping below 4%. Combined with the traditional spring uplift in activity, these shifts may be keeping buyers in the game, despite ongoing affordability pressures.
"The rebound in prices suggests the market may be finding its footing after a turbulent few months. With conditions slowly improving, it’s no longer just a question of catching a deadline, but of catching the right moment to move."
Jeremy Leaf, north London estate agent and former RICS residential chairman, added: “The market is baring its teeth. Even when buyers could no longer take advantage of the stamp duty holiday we found the overwhelming majority continued with their moves.
“With plenty of choice of flats in particular, prices have inevitably softened but have held up much better for houses where longer-term need is more apparent. Activity has been supported by strong employment, steady inflation and the southerly direction of travel for mortgage rates, even if cuts are made later rather than sooner than anticipated."
