House price growth in the UK continues to decelerate, with London being the only region witnessing an annual drop, according to a report from e.surv.
The West Midlands recorded the highest regional growth rate at 6.0%. However, flats reported lower average prices due to an increase in pieds-à -terre sales. The average house price in April was £375,063, a 0.5% decrease from March, but a 3.5% annual increase.
Richard Sexton, Director at e.surv, emphasised the importance of viewing these trends in the right context. Since the onset of the pandemic in March 2020, house prices have risen by £60,000 or 20%, with a subsequent reduction of just under £5000 from the peak in October 2022.
Sexton pointed out that despite monthly trends often being influenced by non-housing economic factors, the fundamental issues affecting the market remain unchanged. The ongoing lack of supply and current affordability issues are hindering activity but also supporting prices, as there is simply not enough of the right kind of housing in the market.
This reality has been acknowledged by both major political parties, positioning housing as a key issue in the upcoming election. There has been talk of reintroducing Help-to-Buy and other market-led mortgage products to aid new buyers.
Sexton added: “We are only just past April – a key month for buyers and sellers and it is too early to say whether this key month in the housing calendar will herald a return to more normal growth trajectory.
“But whatever the next couple of months bring, our data suggests undue levels of pessimism are probably misplaced.”
