House prices dip in March as growth slows to 0.8%, Halifax
Halifax data shows prices fall 0.5% amid rising mortgage rates and global uncertainty.
UK house prices fell by 0.5% in March, taking the average property value to £299,677, as annual growth slowed to 0.8%, according to the latest Halifax House Price Index.
The decline follows a 0.3% rise in February and points to a loss of momentum in the market, with wider economic uncertainty and rising mortgage rates weighing on buyer confidence.
Amanda Bryden, head of mortgages at Halifax, said: “House prices fell -0.5% in March, following the modest +0.3 per cent increase seen in February.
“As a result, the average property price is now £299,677.
“The pace of annual growth has also eased, slowing to +0.8 per cent from +1.2 per cent the previous month, suggesting the market has lost some momentum as spring begins.”
She said the slowdown reflects uncertainty linked to global events, adding: “The recent slowdown in the housing market reflects the wide uncertainty regarding the conflict in the Middle East.
“Concerns about higher energy prices have pushed up inflation expectations, which in turn led to a rise in mortgage rates, reducing confidence that interest rates will be cut this year and dampening the initial momentum in the market seen at the start of the year.”
Regional performance remained mixed, with Northern Ireland recording the strongest annual growth at 8.7%, while the North East saw prices rise by 5.0%, outperforming Scotland.
By contrast, southern regions continued to weaken, with prices in the South East down 1.9% year-on-year and London falling 1.2%.
Nathan Emerson, chief executive at Propertymark, said: “We are at an important intersection where we must clearly acknowledge future challenges ahead.
“However, a lot has changed in a short space of time, with numerous sub 4% mortgage deals being withdrawn over the last few weeks as the wider economy adjusts to potential uncertainties.”
Amy Reynolds, head of sales at Antony Roberts, said: “Halifax’s data reinforces what we’re seeing on the ground: prices are broadly stable, with modest growth where supply is tight and homes are priced realistically.
“We are seeing a slight softening in viewing numbers as some pause to assess the situation; however, the underlying market remains robust.”
Mark Harris, chief executive at SPF Private Clients, said: “Mortgage activity remains brisk as borrowers move to secure rates before they edge higher.
“With base-rate expectations off the table for now, the short-term trajectory for mortgage rates is upwards and independent advice is extremely important.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Activity picked up encouragingly earlier this year but was stopped in its tracks when it became apparent that fallout from war in the Middle East would be more long-lasting than previously feared.
“However, even if the conflict ends soon, inflation and mortgage rates driven up by oil price rises are likely to persist for a while at least.”
Tomer Aboody, director at MT Finance, said: “Although hope of lower rates and stamp duty are dwindling, many have already come to the conclusion that there is only so long they can put off the decision to move before they simply have to because of their situation.”
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