House prices fell 3.3% annually in April despite downward price pressures continuing to ease across the board, e.surv has found.

In its house price index (HPI), e.surv revealed that the average sale price of a home in England and Wales dropped by 0.2% month-on-month, just over £600, with the average price reaching £256,014.

Although prices are now £23,000 (6.1%) below the peak reached in October 2022, they remain around £40,000 (13%) higher than at the start of the COVID pandemic in March 2020.

The annual rate of price change has been falling since its peak of 12.4% in August 2022, with the peak timing coinciding with the period of rapidly rising mortgage rates in late 2022 and early 2023.

However, house price inflation turned negative last June, with the largest annual percentage falls seen in the opening months of 2024.

e.surv added that although prices have continued to soften month-on-month, e.surv there has been a "modest" improvement in year-on-year comparisons, with the 3.3% decline on a year ago is the strongest performance since last autumn.

Director at e.surv, Richard Sexton, said: "The pushing back of previously expected interest rate cuts by the Bank of England and the subsequent upward repricing of mortgage rates by lenders, has meant any anticipated help for borrowers has been short-lived. Less buyers, of course, has an impact on prices which we can clearly see being played out at a regional level."

Regionally, the North East performed the best annually, with house prices remaining the same between April 2023 and 2024, and the average selling price standing at £195,780.

The North West (0.7%), the West Midlands (0.2%) and Wales (0.9%) saw marginal falls in house prices annually.

However, the South East (6.4%), East of England (4.6%) and London (3.7%) recorded the largest drops in house prices, with average selling prices standing at £445,985, £388,815 and £667,112 respectively.

Sexton added: "A real north-south divide has opened up. London, the South East, and East of England are the regions with the weakest price trends and continue to struggle, reflecting the much higher house price levels, affordability challenges and greater reliance on mortgage finance in these regions - factors that really impact first-time buyers whose prospects of buying have been facing headwinds for years now.

"Much of this may change after the coming election as political parties are already promising action to support the first-time buyer market."

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