The Halifax House Price Index has revealed that UK prices rose at the fastest annual rate this year in April.
The lender said that the average house price increased by 0.3% in April after a dip of 0.5% in March, and now stands at £297,781. Halifax says that easing mortgage costs and steady buyer demand had led to the rise, while the increased activity earlier in the year to beat the Stamp Duty changes also played its part.
Year-on-year, prices rose by 3.2%, up from 2.9% in March — the fastest annual growth rate so far this year.
Amanda Bryden, head of mortgages at Halifax, commented: “UK house prices rose by 0.3% in March, an increase of just under £900. The annual growth rate also ticked up to 3.2%, reaching its highest level so far this year. The typical UK property is now valued at £297,781.”
“We know the Stamp Duty changes prompted a surge in transactions in the early part of this year, as buyers rushed to beat the tax-rise deadline. However, this didn’t lead to a significant increase in property prices, with the last six months characterised by a stability in prices rarely seen since the pandemic.”
“Mortgage rates have continued to fall, with most lenders now offering rates below 4%. Coupled with positive earnings growth that has outpaced broader inflation, these factors have helped to steadily improve affordability for many buyers.”
On a regional basis, Northern Ireland saw the largest growth, with an average house price rise of 8.1% year-on-year climbing to £208,220. Wales saw prices increase by 4.7% while Scotland saw an increase of 4.6%.
In England, the North West saw the best annual increase, rising 4.1% to an average of £240,975.
Despite remaining the UK’s most expensive housing market, London only recorded a small annual increase of 1.3%, with the average house price now standing at £543,346. The South West recorded the slowest annual price growth with 0.9%.
London continued to see subdued growth, up just 1.3% annually. However, it remains the UK’s most expensive housing market, with an average property costing £543,346. The South West recorded the slowest annual price growth at 0.9%, with average prices standing at £304,451.
Amanda Bryden concluded: “Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments. There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year.”
CEO of Yopa, Verona Frankish, commented: “We saw the market momentarily pause for breath ahead of the recent stamp duty deadline which caused the monthly rate of house price growth to slow.”
“However, it’s clear that now this deadline has passed, the market has immediately bounced back, as buyers and sellers push forward with their plans to move in 2025.”
“This further boost to current market sentiment will only strengthen the performance of the property market and we expect that house prices will continue to climb over the remainder of the year.”
Director of Benham and Reeves, Marc von Grundherr, commented: “The housing market continues to demonstrate its resilience and not only have we seen prices start to climb on a monthly basis, but the annual rate of growth has also accelerated to its fastest pace seen so far this year.”
“This has been driven by the return of the nation’s homebuyers who have grown in confidence as interest rates have reduced and, with a further cut expected today, this momentum is only likely to strengthen as the year progresses.”
