UK house prices rose on average by 0.3% last month, according to Halifax, following a 0.5% drop recorded in March.
The bank’s latest House Price Index estimates that the average price of a home in the UK is now £297,781, up from £296,899 the previous month. Over the past six months, house prices have remained “remarkably stable”, Halifax said, with the average prices down just £48.
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.”
Halifax expects to see modest price growth over the rest of the year, helped by easing mortgage rates. Several lenders have trimmed their rates in recent weeks and May’s rate cut is likely to see further reductions.
“Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers,” said Ms Bryden. “Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments.”
Northern Ireland continues to see strongest growth
House prices in Northern Ireland have seen the sharpest increase in annual property price growth, according to Halifax, with prices rising by 8.1% in March, bringing the average house price to £208,220.
Wales and Scotland follow, recording annual increases of 4.7% and 4.6% last month respectively. The average price of a property in Wales now stands at £229,079 and at £214,011 in Scotland.
In England, the North West showed the strongest growth in March, with property prices in this region up 4.1% annually, taking the average price of a home there to £240,975.
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.
