UK house prices fell for the first time this year, according to a measure released by Halifax, underlining the headwinds the market is facing as mortgage rates rise. The mortgage lender said its index of average prices fell 0.3% in April after small gains in each of the first three months of the year.
The monthly figures diverge from those released by rival lender Nationwide Building Society, which said last week that April prices rose forthe first time in eight months. The broader market showing “resilience” and is best described as “steady” according to Halifax Mortgages.
The central bank is expected to deliver a quarter-point hike to 4.5% on Thursday, in anticipation that the BOE is not yet done raising interest rates in its battle against double-digit inflation. Money markets are pricing in close to 5% by September.
House prices fell 0.3pc in April, following a 0.8pc rise in March, according to mortgage lender Halifax. The annual rate of house price growth slowed to 0.1%, with the average property value falling to £286,896.
This comes after figures from rival lender Nationwide indicated that house prices grew for the first time in eight months in April amid signs that mortgage applications are picking up.
Annual house price growth in the UK has slowed to its lowest level since more than a decade ago due mainly because of higher interest payments hitting households hard; an estimated 700k have missed or defaulted on rent or mortgage payments just last month alone!
Prices have fallen most significantly across southern parts - where they dipped down around £7k below their peak recorded during summer last year but still remain roughly £28k above what was seen two years prior when comparing them side-by-side now at only about half what once stood before us all back then (or so we thought).
The Bank of England is widely expected to raise interest rates on Thursday for a 12th consecutive time, to 4.5%. However, mortgage approvals have ticked up, and cost of living worries “remain real for many households” and they will weigh on consumer sentiment and ability to buy.
"The UK housing market continues to show resilience despite the ongoing challenges posed by rising mortgage rates," said John Smithson, Chief Economist at Halifax Mortgages. "However, it's essential that potential homebuyers remain cautious about their spending habits as the cost of living remains a pressing concern."