UK house prices fell in April, edging down 0.1% on the month, according to the latest Halifax House Price Index.
The average property price now stands at £299,313, only marginally below March’s £299,609.
Annual growth slowed to +0.4% from +0.8% in March, reflecting a more cautious tone from buyers as recent global developments weigh on the outlook.
Halifax’s Head of Mortgages, Amanda Bryden, pointed to higher energy prices feeding into inflation expectations, prompting markets to reassess the path for interest rates and pushing up borrowing costs for many buyers.
“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,” Bryden said.
“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.”
Despite the slightly softer picture, the market continues to display the resilience that has been its hallmark in recent years, supported by wage growth that is still outpacing house price inflation and the fact that most existing homeowners are on fixed-rate deals, insulating them from short-term rate moves.
The average price paid by first-time buyers slipped to £238,908, the lowest level so far this year. This is good for first-time buyers seeking to get on the ladder, but not so good for those looking to sell.
Regionally, the North-South divide is widening. Northern Ireland continues to lead the UK with annual growth of 7.6%, followed by Scotland at 4.0% and the North East of England at 4.5%. The North West rose 3.4%, while Wales slowed to 0.7% growth.
The South remains under pressure, with the South East down 2.0% year-on-year to £383,044 and London down 1.4% to £536,051.