The average property prices in the UK saw a slight increase of 0.1%, following a 0.9% fall in March, as reported by Halifax. Despite this marginal rise, the annual increase in house prices stood at 1.1%, with the average home now valued at £288,949. However, regional disparities persist, with significant variations in property price performance across different parts of the UK.
Northern Ireland emerged as the strongest performer, with house prices rising by 3.4% annually in April, although this growth rate slowed from 4.1% in March. In Wales, annual price growth decelerated to 1.1%, while Scottish house prices rose by 1.5% year-on-year. Meanwhile, the North West of England experienced the most robust growth at 3.3% annually, with average prices reaching £231,599.
Conversely, house price declines were primarily observed in southern regions of England. Eastern England saw the largest drop of 1.1% in average prices, bringing the average house price down to £329,723. London, despite relatively flat price rises over the past year at just 0.1%, continues to have the highest average property prices at £539,336.
Amanda Bryden, head of mortgages at Halifax, attributed the plateauing of average house prices in early 2024 to the housing market adapting to higher interest rates. However, affordability constraints remain a significant challenge, influencing both new buyers and those transitioning from fixed-term deals. Bryden anticipates modest property price increases throughout 2024, especially if there are expected downward moves in Bank Rate.
Gareth Lewis, managing director of property lender MT Finance, emphasized the need for stimulus in the housing market to boost confidence among buyers and sellers. While the slight uptick in prices suggests some market confidence, Lewis highlights the importance of increased activity and transaction numbers. Alice Haine, personal finance analyst at Bestinvest, noted the continued influx of buyers into the property market, despite uncertainties. This is evidenced by the rising net mortgage approvals, indicating a normalization of the market following the challenges of 2023.