Recent data has revealed that whilst house prices in the three months to April were 2.2% up on the corresponding period in 2017, growth subsided from March’s reading of 2.7%.
The figures from Halifax also revealed that house prices from February to March were 0.1% lower than the previous three month period – representing the third consecutive quarterly decline.
Following March’s month-on-month price rise of 1.6%, April saw prices drop by 3.1%, demonstrating just how sharply the figures can change on a short term basis.
Commenting on the data was Russell Galley. The Managing Director of the Halifax said: “We’ve seen annual house price growth ease from 2.7% in March to 2.2% in April. House prices in the three months to April were 0.1% lower than the previous three months. Both the quarterly and annual rates have fallen since reaching a recent peak last autumn, with these measures providing a more stable indication of the underlying trend than the monthly change.
“Housing demand has softened in the early months of 2018, with both mortgage approvals and completed home sales edging down. Housing supply – as measured by the stock of homes for sale and new instructions – is also still very low. However, the UK labour market is performing strongly with unemployment continuing to fall and wage growth finally picking up. These factors should help to ease pressure on household finances and as a result we expect annual price growth will remain in our forecast range 0-3% this year.”