The average house price in the UK increased by 0.1% month-on-month to £288,781, Halifax has found.

The increase, which was revealed in the latest Halifax house price index, follows a drop of 0.9% in March, when the average house price stood at £277,781.

Annually, house prices increased by 1.1%, up from 0.4% growth in March, although Halifax said that this can be attributed to the base effect of weaker price growth around this time last year.

Head of mortgages at Halifax, Amanda Bryden, said: "This reflects a housing market finding its feet in an era of higher interest rates. While borrowing costs remain more expensive than a few years ago, homebuyers are gaining confidence from a period of relative stability.

"Activity and demand is improving, evidenced by greater numbers of mortgage applications so far this year, while at an industry level mortgage approvals have reached their highest point in 18 months.

"Our recent research also found that buyers are adjusting their expectations, with first-time buyers in particular compensating for higher borrowing costs by targeting smaller properties. We see this reflected in property prices for the first few months of this year, with the value of flats rising most sharply, closing the ‘growth gap’ on bigger properties that’s existed for most of the last four years."

In terms of nations, Northern Ireland the strongest performer in the UK, with house prices jumping by 3.4% year-on-year in April. However, this was a decrease from 4.1% in March.

The average house price in Northern Ireland now stands at £192,502.

In Wales and Scotland, prices increased by 1.1% and 1.5% respectively, with prices now standing at £218,775 and £204,579.

Across England, the North West continued to see the strongest growth, up by 3.3% on an annual basis to £231,599, while annual prices in the South continued to fall.

The East of England recorded the biggest decline in house prices of 1.1%, with homes selling for an average of £329,723, a drop of £3,541 over the last 12 months.

London retained the title of the most expensive region in the UK to buy a home, with an average price of £539,336. Despite this, over the last year, house prices have only increased by 0.1%.

Head of personal finance at Hargreaves Lansdown (HL), Sarah Coles, added: "Sellers have some hope, with interest rates projected to fall in the second half of the year, and at least a couple of cuts this side of the new year. However, the market remains in the balance. On the one hand, the RICS report has shown that buyers are still optimistic enough to keep coming back to the market - despite higher rates.

"On the other hand, rate falls are now expected to come later and kick in more slowly than many had predicted: it may not be the shot in the arm sellers were hoping for. It means that while the property market may well spend 2024 in positive territory, it’s likely to be fractional, and it may take a while longer for sales to take off."

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