House prices edged down for a second consecutive month in April, according to the latest figures from Halifax, as uncertainty surrounding the economy and interest rates continued to weigh on the housing market.
The lender reported that the average UK property price now stands at £299,313, which is £296 lower than the figure recorded in March.
While the monthly decline was relatively modest at 0.1%, it marks another sign that the property market may be slowing after a stronger start to the year.
Annual growth also loses momentum
Halifax also noted that annual house price growth weakened during April.
Year-on-year growth slowed to 0.4%, down from 0.8% in March, suggesting that price growth across the market is continuing to cool.
Although prices remain higher than a year ago overall, the pace of growth has become much more subdued compared with previous years when the market experienced rapid increases.
The slowdown comes as many buyers continue to face affordability pressures linked to mortgage costs and broader economic uncertainty.
First-time buyers see lower prices
The latest data showed that first-time buyers paid an average of £238,908 in April.
According to Halifax, this was the lowest average price recorded for first-time buyers so far this year.
While lower prices may offer some encouragement to those trying to get onto the property ladder, higher mortgage rates continue to create affordability challenges for many households.
Even small changes in borrowing costs can significantly affect monthly repayments, particularly for buyers with smaller deposits.
Economic uncertainty affecting confidence
Amanda Bryden said recent global events have created additional uncertainty for both buyers and lenders.
She explained that rising energy prices have influenced inflation expectations, leading financial markets to reassess where interest rates may head in the coming months.
As a result, borrowing costs have increased again for many buyers, despite earlier hopes that mortgage rates would continue easing throughout 2026.
Bryden added that while the housing market may cool slightly in the short term, it has continued to show resilience overall.
She pointed to steady wage growth as one of the factors helping to support the market, with earnings continuing to rise faster than house prices in many parts of the country.
Northern Ireland records strongest growth
Despite the national slowdown, some parts of the UK continued to see stronger house price growth than others.
Northern Ireland recorded the fastest annual increase, with average property prices rising by 7.6% over the past year to reach £224,851.
Scotland also posted solid growth, with prices increasing by 4% annually to an average of £222,448.
In Wales, annual growth reached 0.7%, taking the average property value to £230,952.
Regional differences remain clear
Across England, regional performance continued to vary considerably.
The North East saw annual growth of 4.5%, with average prices climbing to £183,445.
Meanwhile, the North West recorded annual growth of 3.4%, bringing the average property value there to £248,945.
However, southern regions showed weaker performance.
The South East experienced a 2% annual decline, with average prices falling to £383,044.
London also recorded a fall, with property values down 1.4% year on year to £536,051.
These regional differences highlight how affordability pressures and buyer demand continue to vary across the country.
Industry experts react to the latest figures
Property professionals largely described the latest slowdown as a sign of market adjustment rather than a major downturn.
Nathan Emerson said it was reassuring to see house prices remaining relatively stable despite ongoing economic uncertainty.
However, he warned that affordability could remain a concern if inflation pressures continue and interest rates remain elevated.
There is also growing speculation that the Bank of England may need to keep rates higher for longer to manage inflation risks.
Mortgage rates remain a key issue
Many analysts believe mortgage pricing will continue to play a major role in shaping the housing market over the coming months.
Tom Bill said the recent rise in mortgage rates is likely to place gradual downward pressure on house prices.
He noted that many buyers are still completing purchases using older mortgage offers secured before recent market volatility pushed rates higher.
As those cheaper deals expire, some buyers may find their spending power reduced, potentially softening demand later in the year.
Even so, Bill suggested that modest house price growth could return by the end of 2026 once market conditions stabilise.
Buyers continue adapting to the market
Despite affordability challenges, many buyers are still moving ahead with property purchases.
Jason Tebb said many needs-driven buyers and sellers remain committed to moving home despite political and economic uncertainty.
Rather than leaving the market altogether, he said many borrowers are adjusting to higher mortgage costs and trying to secure competitive rates while they are still available.
Other industry figures echoed similar views, describing the recent dip in prices as relatively minor within the wider context of a stable market.
London market remains resilient
Even though London prices declined year on year, some agents reported steady levels of buyer demand across the capital.
Guy Gittins described the monthly dip as modest and said it reflected a more balanced market rather than a serious downturn.
He added that demand remained healthy during April and suggested that holding the base rate steady could help support confidence among buyers moving forward.
Meanwhile, Verona Frankish said the market’s underlying resilience remains clear despite affordability pressures.
She argued that many buyers have now adapted to higher borrowing costs and are continuing with their property plans.
What could happen next?
The outlook for the housing market remains closely tied to inflation, mortgage rates, and wider global economic conditions.
If inflation stays elevated, lenders may continue pricing mortgages cautiously, which could limit buyer affordability and place additional pressure on house prices.
However, if borrowing costs begin to stabilise later in the year, confidence may gradually return to the market.
For now, Halifax’s latest figures suggest that the UK housing market is slowing rather than collapsing, with modest monthly declines masking a picture of ongoing resilience in many areas of the country.
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