A 0.3% increase in house prices, as reported in the April Halifax House Price Index, is a sign of sustained confidence that offers good news for buyers, experts say.
The average property price is now £297,781, compared to £296,899 the previous month, with an annual growth rate of 3.2%, up from 2.9% in March.
Commenting on the figures, Propertymark CEO Nathan Emerson said:
“This is a sign of sustained confidence in the UK’s housing market following a recent stamp duty surge in homebuying, and it should give those sellers hoping to take advantage of the traditionally busier spring and summer months motivation to move up the housing ladder.”
The strongest annual growth was found in Northern Ireland, which saw an 8.1% increase in annual property price inflation that took the average house price to £208,220. In Wales, a 4.7% increase saw the average house price increase to £229,079, with Scotland’s average now sitting at £214,011 after a 4.6% year-on-year increase.
In England, the North West showed the strongest growth at 4.1%, taking the average price to £240,975. The lowest was found in the South East, with 0.9% and an average house price of £304,451.
London prices continue to level out, with growth of just 1.3%. However, the capital remains the most expensive market for properties in the UK and is more than double many regions, with an average house price of £543,346.
Property insiders were broadly in agreement that the report reflects a stable market, despite the expected lull following the SLDT changes.
Ian Mckenzie, CEO of The Guild of Property Professionals, commented:
“While buyer demand has understandably settled from the pre-deadline frenzy, it remains robustly above last year’s levels. More importantly, stock levels are up significantly, offering buyers greater choice, and agreed sales are also higher year-on-year. This increased activity is also reflected in faster selling times, with properties now moving much quicker than at the start of the year.”
Amanda Bryden, head of UK mortgages at Halifax, said:
“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. While the market has cooled slightly since this rush, buyer activity remains strong in comparison to recent years.”
The slight rise in prices is also a sign of a resilient market, according to Mckenzie. He added:
“The engine of the market – transactions – remains strong. We anticipate this trend of steady, and perhaps even slightly firmer, price growth to continue, potentially settling in the 1.5-2.5% range annually. Critically, sales volumes are on track for a healthy 5% uplift this year. This isn’t a market grinding to a halt; it’s a market demonstrating sustained activity and finding a sensible equilibrium, which is good news for both serious buyers and sellers in the long run.”
Gareth Samples, CEO of the The Property Franchise Group, was also encouraged by the news and agrees it suggests a return to stability. He said:
“Encouragingly, we’re still seeing strong underlying resilience in the market. Sales volumes remain robust, with a snapshot of the post-stamp-duty market suggesting movers are carrying on and have adjusted to the tax rise. The level of agreed sales falling through remains steady, with most buyers who missed the deadline still proceeding.
“Crucially, there are more sales being agreed than a year ago, alongside an uptick in available homes, which is essential for long-term market health. This subtle strengthening in annual price growth a sign of the return to sustainable and confident market conditions.”
With signs of a resilient market and today’s announcement of an interest rate cut, improved affordability could offer a further boost to the market. Bryden explained:
“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.”
The benefit could be felt particularly by people who want to make their first move into home ownership, according to CEO and co-founder of ASK Partners Daniel Austin. He said:
“Investors and developers in the residential sector remain motivated by the supply demand imbalance and under the new government, we think there will be more projects that get off the ground. We are seeing a greater variety of housing options, such as co-living schemes, coming to market which fulfil the growing requirements of younger professional buyers. If prices flatten and interest rates start to fall, we will see more first time buyers able to step onto the property ladder.”
