UK house prices fell 0.4% month on month in April with the annual rate of change slowing to 0.6%, from 1.6% in March, latest figures from Nationwide reveal.
Robert Gardner, Nationwide’s Chief Economist, says: “UK house prices fell by 0.4% in April, after taking account of seasonal effects.
Robert Gardner, Nationwide“This resulted in a slowing in the annual rate of house price growth to 0.6% in April, from 1.6% the previous month.
“The slowdown likely reflects ongoing affordability pressures, with longer term interest rates rising in recent months, reversing the steep fall seen around the turn of the year.
“House prices are now around 4% below the all-time highs recorded in the summer of 2022, after taking account of seasonal effects.
Matt Thompson, ChestertonsMatt Thompson, head of sales at Chestertons, says: “The uplift in market activity typically associated with spring was slightly delayed this year but became more evident over the course of April.
“Compared to March, we saw an increase in the number of London house hunters which also led to sellers feeling more confident about putting their property up for sale. Still, demand continued to outweigh supply in April which gave the majority of sellers the upper hand during price negotiations.”
Jason Tebb, OnTheMarketJason Tebb, President of OnTheMarket, adds: “House prices continue to rise year-on-year but at a slower pace and with the national average concealing significant regional variations.
“Buyers remain sensitive on price so sellers must be realistic. Affordability remains a concern for borrowers and the recent increases in mortgage rates are unwelcome.
“However, if inflation continues to fall this should have a positive impact on Swap rates and ultimately mortgage pricing.
“Activity is picking up along with the weather and the market is steadily gathering momentum. Buyers and sellers who have been waiting for the right moment to come to market may find this spring provides the perfect opportunity before any uncertainty caused by a general election takes hold.”
Nathan Emerson, PropertymarkNathan Emerson, CEO of Propertymark, comments on the Nationwide House Price Index for April 2024: “Buyers and sellers are starting to accept the new reality of the housing market in the face of current interest rate levels, and it is encouraging to see that house prices are increasing year on year, giving sellers the confidence they need to put their house onto the market during what will be a busy time for the housing market.
“Propertymark’s latest Housing Insight Report showed there was an 18 per cent increase in new properties coming to the market.
“Also, the number of mortgage approvals made to home buyers increased from 56,100 in January to 60,400 in February, according to recent Bank of England figures.
“Hopefully the UK Government takes the initiative and encourages growth in the housing market by meeting its own housing targets.”
Tom Bill, Knight FrankTom Bill, head of UK residential research at Knight Frank, says: “The house price growth seen in the first two months of this year is going into reverse as higher mortgage rates take their toll on demand. Borrowing costs have risen as a strong labour market means the prospect of a rate cut has become more remote.
“There are added financial pressures in the system as a wave of owners roll off sub-2% mortgages agreed in early 2022. We believe demand and house price growth will pick up later this year as a rate cut moves onto the horizon.”
Jeremy LeafJeremy Leaf, north London estate agent and a former RICS residential chairman, says: “We are not surprised by the small drop in property prices.
“The increase in listings is resulting in more choice for buyers and some heavy negotiations on the ground which means only realistic sellers are proving successful.
“However, underlying demand is much more resilient than it was a few months ago, coinciding with the stronger spring market.
“There is confidence that affordability will improve now that inflation seems to be more under control and despite recent relatively small increases in mortgage payments.”
Amy Reynolds, Antony RobertsAnd Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “Spring has finally sprung with clear evidence that the housing market has kicked into gear.
“Our offices are the busiest they have been all year, particularly with family homes coming to market, as they look better at this time of year, and a significant uplift in viewings.
“Well-finished properties are capturing buyers’ attention, due to the uncertain costs when it comes to refurbishment work and the challenges in finding the right builder.
“Creeping mortgage rates are not helping the market and are holding back the lower end. The Bank of Mum and Dad remains essential for the majority of first-time buyers in London and the southeast where property prices are higher.”
