Average UK property value holds near £300,000 mark despite softening demand and higher borrowing costs
The average UK house price fell marginally in April, declining 0.1% from March to £299,313, according to the latest Halifax House Price Index.
Annual growth slowed to 0.4%, down from recent months.
Amanda Bryden (pictured right), head of mortgages at Halifax, attributed part of the slowdown to deteriorating global conditions. "After a strong start to the year, recent global developments have added a greater degree of uncertainty to the outlook," she said.
"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.
"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 softening, Bryden pointed to continued underlying stability. "The housing market continues to display the resilience that has been its hallmark in recent years.
"While activity is likely to cool in the near term, the underlying picture remains one of relative stability, supported by wage growth that continues to outpace house price inflation.
"Another important factor is that the majority of existing homeowners are on fixed rate mortgages, meaning they are largely insulated from short-term changes in interest rates."
For first-time buyers, the picture was mixed. "A slower pace of house price growth may be disappointing news for existing homeowners," Bryden said.
"However, for those looking to step onto the property ladder, stable prices are helpful, even if higher mortgage rates mean affordability remains stretched. The average price paid by first-time buyers has fallen slightly to £238,908, its lowest level so far this year."
Regional breakdown
Price performance continued to diverge sharply along a north-south axis. Northern Ireland recorded the strongest annual growth in the UK at 7.6%, bringing the average property value to £224,851. Scotland followed with annual growth of 4%, taking the average to £222,448.
In England, the North East posted annual growth of 4.5% to reach £183,445, while the North West rose 3.4% to £248,945. Wales saw growth slow considerably, with annual gains of just 0.7% and an average price of £230,952.
Southern markets continued to contract. The South East recorded the steepest annual decline at -2%, with average prices falling to £383,044. London saw values drop 1.4% year-on-year to £536,051.
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