Second month of decline follows growth in January
The average value of UK homes fell by 0.5% in March as prices continued to normalise after a rush to beat the stamp duty deadline.
According to Halifax’s latest house price index, average property prices now stand at £296,699 after another month of decline, with March’s drop following a 0.2% fall in February.
Halifax’s head of mortgages, Amanda Bryden, said that prices had risen in January as buyers tried to seal deals ahead of the March stamp duty deadline.
“However, with those deals now completing, demand is returning to normal and new applications slowing,” she said.
On a quarterly basis, prices rose 0.5% and they were also up 2.8% in the year. That rate of annual growth was unchanged from February.
>> See also: Nationwide reports house price growth flat following end of stamp duty deadline rush
Northern Ireland continued to show the highest rate of annual property price growth, with London experiencing the lowest levels while retaining the highest average prices.
Bryden said that, looking ahead, potential buyers still face challenges from the “new normal of higher borrowing costs” as well as “a limited supply of available properties to choose from, and an uncertain economic outlook”.
“However, with further base rate cuts anticipated alongside positive wage growth, mortgage
affordability should continue to improve gradually, and therefore we still expect a modest rise in house prices this year,” she added.
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