Halifax Home Price Index shows that deals early this year prompted a surge in deals as buyers rush to beat the tax extension deadline, but real estate prices rose only 0.3% in April.
Data showed that house prices rose £900 last month to £297,781, while prices fell £296,899 in March, down 0.5 per cent.
Starting from 2.9% in March, the annual growth rate has reached 3.2% so far this year.
House prices have remained stable over the past six months, down just £48. Halifax mortgage director Amanda Bryden said the past six months are characterized by the seldom seen price stability since the pandemic”
“The market has cooled slightly since this haste, but buyer activity is still strong compared to recent years,” Bryden explained.
The data also show that Northern Ireland, Wales and Scotland have the strongest annual growth in the UK, with all three countries surpassing the UK region.
Northern Ireland continues to release the highest levels of annual property price inflation. Prices rose 8.1% in April to an average of £208,220.
House prices in Wales rose to 4.7 per cent last month and now averaged £229,079, while property prices in Scotland rose 4.6 per cent year-on-year in April to average £214,011.
In England, the North West showed the biggest growth, with an annual growth of 4.1%. The average cost of a property is now £240,975.
London continues to see a 1.3% increase in house prices each year. However, capital remains the most expensive market for UK real estate, with an average price of £543,346.
The Southwest region has the highest annual inflation rate of property prices at 0.9 per cent, with an average house price of £304,451.
“Mortal rates have been falling, and now most lenders offer rates below 4%. Coupled with positive revenue growth, which outweighs widespread inflation, these factors help steadily increase the affordability of many buyers,” Blyden noted.
“Overall, despite the soft economic environment, the market continues to show resilience, and the market continues to show resilience. Consumer price inflation may cause consumer price increases as household bills increase, but with further base tax rates expected, we expect a similar trend for moderate price growth this year.”
While the stamp duty concession is absent, Onthemarket President Jason Tabb explained: “The housing market continues to get rid of external economic concerns and shows great resilience.”
“The recent basic reduction has greatly increased confidence and activity. Today’s Bank of England has further slowed down the pace as we save stamp duty behind us, which will be especially timely and as the year goes, the market provides much-needed stimulus for the market.”
Jonathan Handford, managing director of Fine & Country, added: “House prices rose in April, which ignored slowing expectations after the crazy stamp duty deadline in March and pointed to a market with a more resilient than expected.”
“First-time home buyers are still facing challenges, especially as the tax relief threshold is now down £125,000, but the decline in inflation is providing a more encouraging backdrop. CPI fell to 2.6% in March, and the market is priced at a potential base rate currently cut from the Bank of England, which is currently at 4.5%, which is probably today.”
“We are now seeing consequences, with transactions and mortgage approvals falling, although prices remain stable as buyers and sellers await whether the expected lower interest rates will occur,” said Tomer Aboody, MT Financial Director.
