UK house prices fall in April after three months of growth

UK house prices fell in April after three consecutive months of growth, according to data released by Halifax on Tuesday.

On a month-on-month basis, prices were down 0.3% to £286,896 following a 0.8% increase in March.

On an annual basis, prices were up just 0.1% in April, down from 1.6% growth a month earlier.

Kim Kinnaird, director of Halifax Mortgages, said house prices over recent months have largely mirrored the short-term volatility seen in borrowing costs.

"The sharp fall in prices we saw at the end of last year after September’s ‘mini-budget’ preceded something of a rebound in the first quarter of this year as economic conditions improved," she said.

"The economy has proven to be resilient, with a robust labour market and consumer price inflation predicted to decelerate sharply in the coming months. Mortgage rates are now stabilising, and though they remain well above the average of recent years, this gives important certainty to would-be buyers. While the housing market as a whole remains subdued, the number of properties for sale is also slowly increasing, as sellers adapt to market conditions.

"Alongside a market-wide uptick in mortgage approvals, these latest figures may indicate a more steady environment. However, cost-of-living concerns remain real for many households, which will likely continue weigh on sentiment and activity. Combined with the impact of higher interest rates gradually feeding through to those re-mortgaging their current fixed-rate deals, we should expect some further downward pressure on house prices over course of this year."