House prices in the UK in the three months to March were 3.2% higher when compared to the same three months a year earlier, the latest Halifax House Price Index revealed.

Furthermore, despite Brexit uncertainty, property prices in the first quarter of 2019 were 1.6% higher than in the preceding quarter, while the number of mortgage approvals remained around 40% below pre-financial crisis levels.

When analysing house prices on a monthly basis, they dropped by 1.6% between February and March, taking the average house price in the UK to £233,181.

Commenting on the findings, Halifax managing director Russell Galley said: “The average UK house price is now £233,181 following a 1.6% monthly fall in March. This reduction partly corrects the significant growth seen last month and again demonstrates the risk in focusing too heavily on short-term, volatile measures.

"Industry-wide figures show that the number of mortgages being approved remains around 40% below pre-financial crisis levels, and we know that lower levels of activity can lead to bigger price movements.

“The more stable measure of annual house price growth rose slightly to 3.2% and is still within our expectation for the year. The need to build up a deposit before getting a mortgage is still a challenge for many looking to buy a property. However, the combined effect of fewer houses for sale and fewer people looking to buy continues to support prices in the long-term.

Galley concluded that these “conflicting challenges”, combined with ongoing uncertainty surrounding Brexit, have impacted the UK housing market, particularly in London, reiterating that he expects continued subdued growth “for the time being”.

Foundation Home Loans marketing director Jeff Knight argued that “in general” the market is proving to be resilient, despite activity “ticking over” at an unusually slow pace for this time of year and while a lack of clarity over Brexit negotiations may be a cause for concern for some.

“First-time buyers and those keen for discounted prices in their next move would be wise to snap up purchases sooner rather than later. That said, a dreary supply of properties on both the rental and purchasing side not only continues to fall short of demand but will further inflate prices making affordability even trickier,” he said.

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