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UK house prices rose in April for the first time this year, buoyed by easing mortgage costs and steady buyer demand. Figures from lender Halifax show that house prices increased by 0.3% last month, reversing the 0.5% drop seen in March and marking the first gains since January.
The average UK property is now valued at £297,781, up from £296,899 in the previous month.
On an annual basis, prices rose by 3.2%, up from 2.9% in March — the fastest annual growth rate so far this year.
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Amanda Bryden, head of mortgages at Halifax, said: “UK house prices rose by 0.3% in March, an increase of just under £900. The annual growth rate also ticked up to 3.2%, reaching its highest level so far this year. The typical UK property is now valued at £297,781.”
Bryden attributed the rise in part to a flurry of activity earlier in the year as buyers sought to beat stamp duty changes.
“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,” she said.
Despite monthly fluctuations, prices have remained broadly flat over the past half-year — down by just £48 in total, according to Halifax.
“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,” Bryden said.
Looking ahead, she added: “Overall, the market continues to show resilience despite a subdued economic environment and risks from geopolitical developments. There is likely to be a bump-up in consumer price inflation as household bills increase, but with further base rate cuts also expected, we anticipate a similar trend of modest price growth this year."
Northern Ireland led the UK’s house price growth with an annual rise of 8.1%, pushing the average property price there to £208,220. Wales followed with prices up 4.7% year-on-year to an average of £229,079, while Scotland saw a 4.6% increase to £214,011.
Among the English regions, the North West posted the strongest performance, with house prices rising 4.1% annually to an average of £240,975.
London continued to see subdued growth, up just 1.3% annually. However, it remains the UK’s most expensive housing market, with an average property costing £543,346. The South West recorded the slowest annual price growth at 0.9%, with average prices standing at £304,451.