House prices remained broadly stable in April, down -0.1%, following a -0.5% fall in March, the latest Halifax house price index shows.
The average property price is now £299,313, compared with £299,609 in March.
Annual growth slowed to 0.4%, from 0.8% in March, however, house prices continue to vary significantly by region and nation, with stronger growth in the North and more subdued conditions in the South.
Northern Ireland still leads UK annual house price growth, with average prices up 7.6% over the past year. Scotland also recorded strong growth, rising 4.0% annually to an average price of £222,448.
Wales has seen property price growth continue to slow, now 0.7% on annual basis.
In England, stronger price growth remains concentrated in northern regions. The North East saw prices rise 4.5% over the year to £183,445, while the North West recorded annual growth of 3.4%, with the average home now costing £248,945.
By contrast, the southern markets continue to see prices fall. The South East led declines, with prices down 2.0% year on year to £383,044, while London saw average values fall by 1.4% to £536,051.
Amanda Bryden, head of mortgages at Halifax, said: “After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook. In particular, higher energy prices have fed into inflation expectations, prompting markets to reassess the path for interest rates – a shift that has already pushed up borrowing costs for many buyers.
“This understandably leads to more caution among some households, with the cost-of-living once again front of mind and extra thought being given to planned property moves.
“Even so, the housing market continues to display the resilience that has been its hallmark in recent years. While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.
“Another important factor is that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short term changes in interest rates.
“A slower pace of house price growth may be disappointing news for existing homeowners. However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched. The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year.”
Nicky Stevenson, managing director at Fine & Country, commented: “House prices were broadly stable in April, edging down by just 0.1%, according to these figures. That kind of ‘two steps forward, one step back’ movement is fairly typical in a market like this, where confidence is improving, but buyers are still keeping a close eye on affordability.
“Annual growth easing to 0.4% underlines that this remains a measured market rather than one racing ahead. The average price has dipped slightly, but the quarterly picture is still marginally positive, which points to overall stability rather than any sharp change in direction.
“Recent global developments have added uncertainty and pushed borrowing costs higher for some buyers, with energy prices feeding into inflation expectations and rate forecasts. Understandably, this makes some households more cautious, particularly with the cost of living still front of mind.
“Home sales are still rising and mortgage approvals have increased, which suggests movers are still progressing, however, they’re being more considered and more price-sensitive.
“As always, the regional story is doing a lot of the work. Northern Ireland continues to lead annual growth at 7.6%, while Scotland is also stronger, and parts of southern England remain softer, with the South East and London still down year-on-year.
“Overall, with Halifax seeing a slight fall in prices and Nationwide recording a slight uplift last week, the picture is mixed. Even though stable prices can be frustrating for some sellers, they help keep homeownership within reach for more buyers and support healthier, more sustainable market activity as we move through spring.”
Jonathan Hopper, CEO of Garrington Property Finders, added: “This is pause for breath rather than panic territory. Halifax’s data shows that at a national level, prices held almost steady in April.
“But national averages tell us little about what’s happening in the widely diverging regional markets. If there’s one universal truth, it’s that the uncertain backdrop of the past two months has made buyers very price sensitive.
“In Scotland and Northern Ireland, as well as in much of northern England, average prices continue to tick upwards as buyer demand for homes seen as good value holds up well.
“Things look different in London and the South East. Halifax’s data shows that average prices in the commuter belt have fallen by 2% over the past year, and by 1.4% in the capital.
“In large part this is due to supply and demand fundamentals. Supply is at an all-time high after the Easter weekend saw the traditional surge in new listings, and demand is thin. In some areas there are too few serious buyers chasing too many homes for sale.
“This mismatch is allowing buyers to call the shots on both tempo and price. In response, some are demanding - and getting - significant price reductions; while those who are not convinced that a home is 100% right for them won’t hesitate to walk away.
“This is creating some fantastic opportunities for committed buyers, and Halifax calculates that the average price paid by first-time buyers across the UK has fallen to its lowest level so far this year.
“For buyers who calculate that lower purchase prices far outweigh the higher borrowing costs caused by the jump in mortgage interest rates seen over the past couple of months, this is a very attractive time to buy.
“But with global uncertainty still looming large, the majority of those agreeing a purchase now are people who need to move, rather than just want to move. On the seller side of the coin, pragmatic sellers are increasingly prepared to ‘take the medicine’ of a price reduction in order to get moved.
“Nevertheless the imbalance between supply and demand is forcing a recalibration on price and the coming months are likely to be challenging for sellers.”
