House prices fall in April as mini-Budget recovery hits speedbump — Halifax
House prices declined slightly in April, ending the recent trend of mini-Budget recovery, according to the latest data from Halifax.
The average price is still £7,000 less than the peak reached in the Summer, before the tumult of the mini-Budget.
Prices in London, meanwhile, declined by 0.2% year-on-year to £538,409.
Kim Kinnaird, director of Halifax Mortgages, said homebuyers are seeing some certainty in mortgage rates again, albeit with higher interest.
“The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months,” Kinnaird said. “Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers. While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions.
While prices were up by 0.7% from last year for first-time buyers, they were down by 0.1% for movers. Halifax said this may be because rents have risen so sharply that it has made buying a home a better decision for more renters.
“Alongside a market-wide uptick in mortgage approvals, these latest figures may indicate a more steady environment,” Kinnaird said. “However, cost of living concerns remain real for many households, which will likely continue weigh on sentiment and activity.
“Combined with the impact of higher interest rates gradually feeding through to those re-mortgaging their current fixed-rate deals, we should expect some further downward pressure on house prices over the course of this year.”
