Halifax says house price growth stalled in March

House prices were unchanged at the end of March on the prior month as the coronavirus crisis destroyed the strong market of early 2020, according to Halifax.

The mortgage lender said that overall average house prices in the month were unchanged from February’s record high, but that it was too early to tell what the effect of the covid-19 pandemic will be. Annual price growth nudged up to 3%, it said. 

It said that early in the month key market indicators had showed a sustained level of buyer and seller activity

Russell Galley, managing director at Halifax, said: “These factors all underlined a positive trajectory and increased momentum in the early part of the year, with confidence rising as political and economic uncertainty eased.

"However, it’s clear we ended the month in very different territory as a result of the country’s response to the coronavirus pandemic."

It said most market activity has been paused, with the public following advice to stay at home, and estate agencies, surveyors and conveyancers temporarily closing as a result.

Halifax said it should be noted that with less data available, calculating average house prices was likely to become more challenging in the short-term.

Galley said: “However, it’s still too early to properly assess what potential long-term impacts the current lockdown might have on the UK housing market.

"While there is very significant uncertainty at the moment, much will depend on the length of time it takes for restrictions to be lifted, the pressure that has been exerted on the economy in the meantime and the effect this has on consumer sentiment."

The data also showed that house prices were 2.1% higher in the January to March quarter than in the preceding three months.