Average house price rose by +0.1% in April on a monthly basis, after a fall of -0.9% in March, the Halifax House Price Index reveals today.
Property prices grew by +1.1% annually vs +0.4% last month while a typical UK home now costs £288,949 compared to £288,781 in March, with Northern Ireland remaining strongest performing nation or region in the UK.
Amanda Bryden, HalifaxAmanda Bryden, Head of Mortgages, Halifax, says: “UK house prices held steady in April, rising on a monthly basis by just +0.1% (less than £200 in cash terms). Annual growth rose to +1.1%, from +0.4% in March, though this can be attributed to the base effect of weaker price growth around this time last year.
“The average property now costs £288,949, compared to £287,244 at the start of the year. While there is always much scrutiny of monthly price changes – and a degree of volatility is to be expected given current market conditions – the reality is that average house prices have largely plateaued in the early part of 2024.
“This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability.
“Activity and demand is improving, evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.
Nathan Emerson, PropertymarkNathan Emerson, Chief Executive at Propertymark, says: “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, 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 commented, “House prices continue to move sideways as higher mortgage rates hit market momentum.
“As the prospect of the first rate cut since March 2020 drifts further into the distance, borrowing costs have edged higher and budgets have been squeezed.
“A short-lived burst of positivity in the early weeks of this year led to higher supply, increasing downwards pressure on prices. A wave of homeowners currently rolling off sub-2% mortgages is adding to the financial pressures in the system.
“As a summer rate cut moves onto the horizon, we expect UK house prices to respond and rise by 3% in 2024.”
Guy Gittens, FoxtonsFoxtons Chief Executive Guy Gittins, says: “Although UK homebuyers continue to wait patiently for interest rates to fall, this has not dampened the growing level of market confidence that has been building since the start of the year and, in fact, many buyers are already pressing ahead with their plans to purchase with hopes of mortgage rate reductions on the horizon.
“Since a hold on interest rates in September last year mortgage approvals have been climbing, there’s been an uplift in viewing activity and more offers are being made, and so it’s clear that both buyers and sellers are responding favourably to a greater degree of market stability.
“This bodes very well for the year ahead and we only expect conditions to improve further as spring turns to summer and these initial offers reach completion.”
Ed Phillips, LomandLomond Chief Executive Ed Phillips says: “Property market conditions have improved notably so far this year and while we’ve seen early signs of positive house price growth, it’s important to note that the landscape remains a difficult one, with buyers still facing a tough task with respect to affordability.
“With this in mind, it’s to be expected that the monthly rate of growth remains subdued, although the positive to take is that annually, property values are still climbing and the market has continued to stand firm.”
Marc von Grundherr, Benahm and ReevesMarc von Grundherr, Director of Benham and Reeves, says: “The property market is arguably a little out of shape following a sustained period of subdued activity as a result of higher mortgage rates.
“And so while we’ve seen a string of positive house price reports in recent months, we’re yet to see the pace lift with respect to monthly growth.
“But while the road ahead may be a challenging one, we remain in a far better place than we were this time last year and that sets a solid foundation for the market to now kick on and post a stronger performance in 2024.”
Jason Harris-Cohen, Open Property GroupJason Harris-Cohen CEO of Open Property Group, says: “Higher borrowing costs remain the key factor when it comes to current house price performance and while inflation may have eased, many buyers will have continued to struggle with their mortgage eligibility.
“This is ultimately restricting the price they can pay and that is being reflected within a somewhat muted housing market performance.
“So while sellers should have a renewed degree of confidence given the uplift in market activity seen in recent months, it’s important to maintain a pragmatic approach to pricing if you do want to sell your home quickly.”
Verona Frankish, YopaVerona Frankish, Chief Executive of Yopa, says: “Yet further growth, both on a monthly and annual basis, should bring another boost to the market and strengthen the momentum that has been building so far this year.
“Just last week, the Bank of England reported that mortgage approvals have climbed for their sixth consecutive month in a row and, while the market may still be finding its feet, it’s only a matter of time before this increase in buyer demand starts to drive a far stronger level of house price growth.”
Amy Reynolds, Antony RobertsAmy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “Our offices are busier, with a significant uplift in viewings.
“Well-finished properties are having the most appeal, due to uncertain building costs and the difficulties in finding a builder in the first place.
“First-time buyers in particular are finding it difficult to raise deposits and are relying on the Bank of Mum and Dad more than ever to buy, especially in London.
“We expect the housing market to continue to strengthen until the summer, subject to no snap general election being called or mortgage rates rising too significantly.”
Jeremy LeafJeremy Leaf, north London estate agent and a former RICS residential chairman, says: “We are not surprised to see house prices up a bit, then down a bit – a pattern which we are finding is repeated on the ground, reflecting that some sellers are more realistic than others.
“The market has lost a little momentum in the last month or so which has chimed with recent modest increases in mortgage rates as well as listings.
“However, underlying confidence remains fairly strong for now at least, allowing purchasers the opportunity to perhaps negotiate a little harder where possible.”
Anthony Kyriacou, KrispyhouseAnthony Kyriacou, Founder and Chief Executive of krispyhouse.com, says: “The news that UK house prices have mostly held steady in April is greater news for the sector and contributes to an increasingly positive future for the UK property market.
“UK house prices rising, even if by only 0.1%, and demand in the market continuing to improve as seen by the greater number of mortgage applications so far this year, is raising hopes that the property market is increasingly improving and has put a dismal last 12 months behind it. However, this is no time for complacency.
“There are still not enough properties coming up for sale and we could do with a further stimulus, such as reform of stamp duty to give the market a real boost. As for the rental market, the gap between supply and demand for housing is still significant, which means rents will stay high too but the fact that house prices are only rising modestly could help more tenants decide to buy and free up more rental properties.”
Karen Noye, QuilterKaren Noye, mortgage expert at Quilter: “The slowdown in the housing market continues to have an impact on house prices, though this morning’s house price index from Halifax paints a marginally more positive picture than Nationwide’s equivalent.
“Halifax reported that house prices grew 0.1% in April following a 0.9% fall in March, while on an annual basis, prices grew by 1.1%.
“The differing views reported in the various house price indices show just how unpredictable the property market remains.
“Though Halifax reports an increase, the growth in house prices is hardly anything to write home about given we would typically expect sales to gain momentum in the spring, and for house prices to rise as a result. However, so far this year that has not been the case as monthly property transactions have been remarkably subdued.
“What’s more, mortgage rates have been gradually increasing, so we can expect transactions to remain dampened for some time yet. When combined with the ongoing cost of living pressures, many prospective buyers will struggle when it comes to affordability, particularly those first-time buyers who will also have found it much harder to save enough for a deposit.
“All eyes will be on the Bank of England as it gears up to announce its latest monetary policy decision later this week. Though it is not expected to declare a shift in stance until later in the year, things are beginning to look a little more positive and we could see a turning point for the property market as we approach the summer months. An interest rate cut would present a more favourable borrowing market and would likely help reignite demand given many people are holding off in hopes of lower rates and reduced affordability pressures.”
James Briggs, TogetherJames Briggs, Head of Intermediary Sales at Together, says: “The latest house price growth figures indicate that the property market is on the up, and with the Bank of England’s interest rate decision coming imminently, many will be hoping for a base rate drop to further boost confidence and the wider economy.
“Regardless of the BoE’s decision, there will still be a considerable cohort who are in a position to press ahead with property plans, taking advantage of alternative ways to secure the finance if they need to do so.
“For those needing to access funds quickly, or find they’re awaiting the sale of an existing property, bridging loans could be a good alternative option. Many aspiring homeowners are also utilising schemes like Right-To-Buy and shared ownership to take their first steps onto the property ladder. For these buyers, it’s always good to speak to a mortgage advisor who can provide guidance on your finance options.”
Gareth Lewis, MT FinanceGareth Lewis, managing director of property lender MT Finance, says: “The housing market desperately needs some stimulus, giving buyers and sellers more confidence to transact.
“The slight uptick in prices compared with March suggests there is a level of confidence in the market but it only goes so far with not enough properties coming to market or buyers able and willing to transact.
“The housing market is a work in progress. Prices haven’t fallen off a cliff, which is encouraging, but some form of stamp duty stimulus would really boost activity and transaction numbers, which are far more important than prices.”
