In April, UK house prices saw a modest increase of 0.1% compared to March, reaching an average of £288,949. This uptick follows a 0.9% decline in prices observed in March, indicating a slight rebound in the market.
On an annual basis, property prices demonstrated a growth of 1.1%, a notable improvement from the 0.4% rise recorded in the previous month. Despite fluctuations in monthly figures, the overall trend suggests a degree of stability in the housing market.
Amanda Bryden, Head of Mortgages at Halifax, remarked on the significance of these figures, highlighting that while monthly changes draw attention, the broader picture reflects a relatively steady trajectory for average house prices in the early months of 2024.
In April, UK house prices saw a modest increase of 0.1% compared to March, reaching an average of £288,949. This uptick follows a 0.9% decline in prices observed in March, indicating a slight rebound in the market.
On an annual basis, property prices demonstrated a growth of 1.1%, a notable improvement from the 0.4% rise recorded in the previous month. Despite fluctuations in monthly figures, the overall trend suggests a degree of stability in the housing market.
Amanda Bryden, Head of Mortgages at Halifax, remarked on the significance of these figures, highlighting that while monthly changes draw attention, the broader picture reflects a relatively steady trajectory for average house prices in the early months of 2024.
“Borrowing costs remain higher than previous years, but buyers are more assured due to market stability,” she noted.Â
Northern Ireland led in performance, with a 3.4% annual increase in house prices, albeit slower than March’s 4.1%. The average home there costs £192,502.Â
In Wales, annual property price growth eased to 1.1% in April from 1.9% in March, with the average price at £218,775. Meanwhile, Scottish house prices increased by 1.5% year-on-year, averaging £204,579.Â
The North West maintained strong growth in England, rising by 3.3% annually to £231,599.
COURTESY OF: https://uk.finance.yahoo.com/news/uk-house-prices-mortgage-rates-063640843.html
In England, the North West saw the strongest growth, rising by 3.3% annually to £231,599. Conversely, the south experienced annual price declines, maintaining the North-South divide. Eastern England saw the largest drop of -1.1%, with homes averaging £329,723, down £3,541 from last year.
London remains the priciest region, averaging £539,336. However, prices have remained relatively stable, with just a 0.1% increase over the past year.
“House price growth signals positivity, yet challenges persist for buyers and refinancers due to ongoing market volatility. Interest rates, stagnant at a 16-year peak of 5.25% since August, fuel significant uncertainty in the mortgage landscape,” stated Alice Haine, personal finance analyst at Bestinvest.
Initially, mortgage rates eased as expectations of imminent rate cuts rose, but recent weeks have seen a repricing amid market reassessments regarding the scale and timing of rate adjustments.
“Buyer activity shows signs of revival, albeit with a focus on smaller, more affordable properties over larger ones. The shift reflects a reversal in the race for space, with flats and terraced houses experiencing faster annual price growth than detached and semi-detached homes. High living costs and interest rates influence purchasing decisions,” Haine elaborated.
Savills forecasts a £60,000 increase in house prices over the next five years as the mortgage market in Britain improves. The upgraded projections reflect a more positive economic outlook.
Kate Steere, property expert at finder.com, notes ongoing uncertainty in the UK housing market. However, with rising mortgage approvals, buyer demand may be strengthening.
Expectations for a Bank of England rate cut in the coming months are widespread, prompting some previously hesitant buyers to re-enter the market. Nonetheless, affordability concerns persist, with major lenders recently hiking rates. While a rapid surge in UK house prices seems unlikely in 2024, signs of recovery are encouraging.
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